Coinbase delists Tether, other MiCA noncompliant stablecoins

Coinbase will restrict European users from trading certain stablecoins like Tether due to MiCA regulatory requirements.

Starting December 13, Coinbase Europe will delist a group of stablecoin tokens, including cryptocurrency’s largest stablecoin, Tether (USDT), to comply with broader rules under the CryptoAsset Markets framework.

Coinbase will also ban trading of stablecoins such as PAX, PYUSD, GUSD, GYEN, and Maker’s DAI, which are classified as non-MiCA-compliant tokens.

It is noteworthy that the crypto exchange will continue to support trading for Circle stablecoins (USDC) and EURC. Circle previously received a first-of-its-kind European stablecoin license under the new MiCA laws. Coinbase added that Tether and other delisted stable tokens may be relisted later, provided they meet MiCA compliance.

At press time, Tether had not publicly addressed the delisting notice. A request for comment sent by Crypto.news also remained unanswered at the time of the report.

Observers have been debating Tether’s fate in Europe for months, as MiCA is scheduled to go into full force at the end of December. Tether CEO Paolo Ardoino previously said the company plans to continue serving EU users. Details of this plan have been scarce, and it’s unclear whether Tether will exit Europe by 2025. Ardoino claimed that MiCA may have put stablecoins at risk in August.

Tether is the largest stablecoin operator by a fair margin, with a market cap of $140 billion and circulating supply. Although the EU is a major economic area, most of Tether’s business addresses emerging markets such as Latin America and Southeast Asia.

The company also made record profits of billions of dollars during the year by investing in Bitcoin (BTC), mining facilities, and data centers. Additionally, Tether’s US Treasury Bill holdings could position the startup as a major beneficiary of American stablecoin policies. However, Tether has not publicly announced a strategy to increase its presence within US borders.