As a seasoned researcher with years of experience tracking the ever-evolving landscape of digital assets, I find myself intrigued by Coinbase’s decision to delist unauthorized stablecoins from its European branch. The incoming MiCA regulations are undoubtedly reshaping the crypto industry, and it seems that compliance is the name of the game for exchanges like Coinbase.
As a crypto investor, I’m preparing for some changes in my portfolio this year-end. The renowned crypto exchange, Coinbase, has announced that it will be removing unauthorized stablecoins from its European operations due to the impending MiCA regulations. This action is being taken in response to these new regulations and is part of Coinbase’s commitment to ensuring compliance with global financial standards.
By year’s end, the U.S.-based digital currency platform Coinbase plans to eliminate any unregulated stablecoins from its European exchange, a decision driven by its commitment to adhere to the latest cryptocurrency regulations set forth by the European Union. This information was obtained by Bloomberg.
Under a new regulation for cryptocurrency assets that took effect in June, stablecoin issuers must now obtain electronic money authorization in at least one European Union country. Starting from December 31st, additional rules governing platforms similar to Coinbase will also be implemented.
Representatives from Coinbase have shared with Bloomberg that they intend to limit services involving uncompliant stablecoins like Tether (USDT) by December 30th. Users will receive an update in November, detailing the possibility of converting their holdings into alternatives such as Circle’s USD Coin (USDC).
By mid-July, according to a report by a French blockchain analysis company, Kaiko, the regulatory framework known as MiCA has positively impacted Circle. The firm’s stablecoins have seen substantial growth in their daily trading activity after the implementation of these new regulations.
As an analyst, I’ve been closely observing the industry landscape and it seems that some key players, like Tether’s CEO, Paolo Ardoino, have voiced apprehensions regarding the new regulations. Particularly, he highlighted the potential systemic risks to banks if the cash reserve requirements become excessively stringent.
The trend of removing certain assets from trading platforms isn’t exclusive to stablecoins. For instance, Kraken has declared a pause on Monero (XMR) trades and deposits within the European Economic Area because of regulatory adjustments, mirroring actions taken earlier by Binance and OKX.
Read More
Sorry. No data so far.
2024-10-04 15:56