Tether’s USDT Faces Coinbase Delisting

Coinbase has announced plans to delist all unauthorized stablecoins from its platform by the end of this year due to new MiCA requirements. As the EU prepares to introduce new policies for the cryptocurrency industry, the exchange is focusing on tokens within the European Economic Area.

The Market in Crypto-Assets (MiCA) regulation will primarily target crypto assets that are not currently regulated under existing financial services laws.

The new framework aims to:

• Enhance the integrity of the crypto market
• Ensure financial stability by regulating the public issuance of crypto assets
• Educate consumers about potential risks associated with digital currencies.

Under the new rules, stablecoin issuers must obtain electronic money authorization in at least one member state. The rule took effect on June 30th, with policies and guidelines for crypto companies, including exchanges, set to be implemented from December 31st.

Tether’s USDT might face delisting

Tether’s USDT, the largest stablecoin by market cap, might be delisted by Coinbase as it has yet to secure authorization to offer stablecoins in Europe. Over time, delisting could impact USDT’s price given that Coinbase has 8.8 million monthly trading users.

A Coinbase spokesperson stated that the exchange is committed to complying with the new regulations and plans to delist all non-compliant stablecoins by December 30, 2024.

In addition to providing users with necessary conversion options from stablecoins, Coinbase will share its planned updates in November. Many leading crypto exchanges, such as Bitstamp and OKX, have already acted to ban access to USDT on their platforms.

Sentiment: Neutral