Coinbase delists Tether, other MiCA noncompliant stablecoins
Coinbase will restrict European users from trading certain stablecoins like Tether due to MiCA regulatory requirements.
Starting Dec. 13, Coinbase Europe will delist a basket of stablecoin tokens, including crypto’s largest fiat-pegged currency, Tether (USDT), to comply with broader rules enshrined in the Markets in Crypto-Assets framework.
Coinbase will also prohibit trading for stablecoins like PAX, PYUSD, GUSD, GYEN, and Maker’s DAI, which were categorized as MiCA noncompliant tokens.
Notably, the crypto exchange will continue trading support for Circle stablecoins (USDC) and EURC. Circle previously secured a European stablecoin license, the first of its kind under new MiCA laws. Coinbase added that Tether and other delisted stable tokens may be relisted later, provided they achieve MiCA compliance.
At press time, Tether had not publicly addressed the delisting notice. Request for commentary sent by crypto.news was also unanswered as of reporting.
Observers have discussed Tether’s European fate for months, as MiCA was scheduled to go into full effect at the end of December. Previously, Tether CEO Paolo Ardoino said the company intends to continue serving EU users. Specifics of this plan were scarce, and it’s unclear if Tether might exit Europe by 2025. Ardoino did assert that MiCA may have put stablecoins at risk back in August.
Tether is the largest stablecoin operator by a fair margin, boasting a $140 billion market cap and circulating supply. While the EU is a major economic area, most of Tether’s business caters to emerging markets like Latin America and Southeast Asia.
The company also pocketed billions in record profits during the year, investing in Bitcoin (BTC), mining facilities, and data centers. Additionally, Tether’s U.S. Treasury Bill holdings could position the startup as a major beneficiary of American stablecoin policies. However, Tether has not explicitly disclosed a strategy to increase its presence within U.S. borders.
