Coinbase, one of the leading global cryptocurrency exchanges, has made a significant announcement regarding its support for stablecoins in light of the upcoming regulatory measures set forth by the European Union’s Markets in Crypto Assets (MiCA) framework. With the regulatory measures set to take effect on December 30, 2024, Coinbase has decided to terminate its support for the popular stablecoin Tether ($USDT).
This decision comes as part of Coinbase’s efforts to ensure compliance with the new regulatory framework established by MiCA. The move to delist Tether ($USDT) is expected to have far-reaching implications, especially considering Tether’s position as the top stablecoin in the market.
The delisting of Tether by Coinbase is likely to impact the liquidity of the crypto market in the EU, as Tether has been widely used for trading and as a gateway between cryptocurrencies and fiat currencies. Despite this development, Tether CEO Paolo Ardoino has expressed confidence in the company’s ability to adapt to the changing regulatory landscape.
In a statement, Ardoino mentioned that Tether is actively working on a technology-based solution to address the regulatory limitations imposed by MiCA. This solution, which will be tailored to meet the needs of the European market, is set to be unveiled in the near future.
Meanwhile, Circle’s stablecoin ($USDC) has emerged as a key player in the stablecoin market, as it is MiCA compliant and will not be affected by the delisting measures imposed by Coinbase. With the launch of Ripple’s stablecoin (RLUSD) on the horizon, there is optimism surrounding its potential success and adoption in the EU crypto market.
Overall, the regulatory changes introduced by MiCA are reshaping the landscape of the cryptocurrency market in the EU. As exchanges like Coinbase take proactive steps to comply with these regulations, the industry is set to undergo significant transformations in the coming years. Stay tuned for further updates on how these developments will impact the crypto ecosystem in Europe.