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Coinbase Tightens the Noose on Stablecoins Before MiCA Deadline

Coinbase, the crypto heavyweight, ain’t playing around anymore with the stablecoin chaos in Europe. By December 30, they will ax any stablecoin that doesn’t fit within the European Union’s new MiCA regulation for users in the European Economic Area (EEA).

The EU wants stablecoin issuers to get their paperwork in order and snag an e-money license in at least one member state. No papers, no play. It’s all about laying down the law before MiCA, the Markets in Crypto-Assets regulation, flexes fully in January 2025.

So, Coinbase is doing what it does best—adjusting to the incoming regulatory blow. They want their platform to stay in the clear, and non-compliant stablecoins gotta go.

MiCA’s Monster Moves Hit Stablecoins Hard

MiCA’s got some sharp claws when it comes to crypto assets, especially stablecoins backed by fiat. The regulation chops crypto into different buckets like electronic money tokens (EMTs) and asset-referenced tokens (ARTs). These categories are putting fiat-backed stablecoins like USDC and EURC under the microscope because MiCA demands reserves to keep things stable.

Coinbase plans to help users shuffle around their stablecoins with a transition plan that’s coming out in November. This roadmap will show EEA customers how to hop to stablecoins that play nice with MiCA. So far, the lucky coins in the spotlight include USDC and EURC, but more could join.

Circle Leads the Pack with a MiCA License

Circle, the gang behind USDC, is ahead of the curve. They locked down the first-ever EU stablecoin license. That makes them one of the few who can stay in the game without getting kicked out.

Coinbase already gave a heads-up about their move. A spokesperson said they’re doing regular checkups on the assets on their platform to make sure everything’s in line with regulations. They added that November will be the moment of truth when they release the transition plan, letting EEA customers know how to shift gears toward stablecoins like USDC and EURC.

So, platforms like Coinbase are now walking the tightrope to avoid slipping off the regulatory radar.