Coinbase will remove certain stablecoins from its platform
in the European Economic Area (EEA) by the end of the year. The company made
the announcement today (Friday), citing upcoming regulatory changes in the
region.
Stablecoins are digital assets designed to maintain a stable
value by being tied to a fiat currency or other asset. These tokens have become
popular in recent years due to their relative price stability compared to other
cryptocurrencies.
MiCA Enforces New Requirements
The European Union’s Markets in Crypto-Assets (MiCA)
regulation, introduced in 2023, is scheduled to take full effect in December.
The regulation imposes strict requirements on stablecoin issuers, including
transparency, liquidity, and consumer protection standards.
Coinbase has said it will provide its affected EEA customers
with the option to switch to stablecoins issued by authorized firms. These
options will include Circle’s USDC and EURC, which are tied to the US dollar
and euro, respectively.
🚨BREAKING NEWS:Coinbase is set to remove non-compliant stablecoins from its platform in the EU this December!On the other hand, Ripple’s stablecoin, ‘RLUSD’, is fully compliant with MiCA regulations and is expected to launch this year!Get ready, because ‘RLUSD’ is poised… pic.twitter.com/OLcSUflRow
— Brett (@Brett_Crypto_X) October 4, 2024
The use of stablecoins has increased significantly, with
major financial firms such as PayPal integrating them into their offerings.
This article was written by Tareq Sikder at www.financemagnates.com.
