What to Note As Coinbase Prepares To Delist Non-MiCA Compliant Stablecoins
The post What to Note As Coinbase Prepares To Delist Non-MiCA Compliant Stablecoins appeared on BitcoinEthereumNews.com.
Coinbase would delist all noncompliant stablecoins on its platform in just a few hours. According to Coinbase’s update, its Europe arm will delist all locally noncompliant stablecoins. This move will help it stay ahead of the European crypto regulation enforcement cutoff date. MiCA’s Impact on Stablecoins This delisting results from the European Union’s Markets in Crypto Assets regulation (MiCA). The first phase of MiCA’s stablecoin has been in effect since June 30. The full regulatory framework will kick off by December 30. Hence, as a precaution, Coinbase Europe’s retail customers and Coinbase Germany GmbH will have their accounts restricted from 11:59 CET. According to the update, the MiCA-restricted assets include USDT, PAX, PYUSD, GUSD, GYEN, and DAI. Only USDC and EURC are MiCA-compliant and will continue to enjoy service support from Coinbase. In October, Coinbase informed its users of the planned delisting of MiCA-restricted stablecoins. In the announcement, the exchange urged users with noncompliant coins to swap their holdings for other stablecoins like USDC. – Advertisement – Interestingly, the MiCA regulations primarily address centralized stablecoins. According to Raphaël Bloch, Co-founder and Editor-in-Chief at The Big Whale, MiCA’s current regulation does not affect decentralized stablecoins. These categories, often governed by protocols or DAOs without a central issuer, are outside the regulatory scope. Bloch speculates that additional oversight might emerge with the EU updating its interpretation of MiCA to include decentralized stablecoins. Bloch also believes Coinbase’s list of assets to delist was an overreach and might be an internal policy. He considers it a proactive step to prepare for possible future regulations that could include decentralized stablecoins. Potential Implications on the Cryptocurrency Market Industry experts have been assessing the potential impact on EU users’ liquidity in the crypto sector. Notably, these assets are a ready avenue for new entrants to enter cryptocurrency…
Filed under: News - @ December 14, 2024 2:25 am