Cryptocurrency exchange Coinbase has announced its plans to delist some stablecoins in the European Economic Area. The move comes as the sector prepares for stricter regulation under new European Union guidelines.

The EU’s Markets in Crypto-Assets (MiCA) regulation, introduced in early 2023, will be fully enforced starting in December 2024. The regulation requires stablecoin issuers, whose tokens are pegged to stable assets to mitigate price volatility, to comply with stringent standards around transparency, liquidity, and consumer protection. Coinbase prepares for regulatory compliance Coinbase sent out and email in which it revealed its plans to align with regulatory requirements.

The company informed its users that it be restricting services for EEA users related to stablecoins that do not comply with MiCA by 30 December 2024. In November, the platform plans to offer its EEA customers the option to transition to stablecoins issued by authorised providers, including Circle’s USDC and EURC, which are tied to the USD and EUR respectively. According to Reuters, stablecoins have seen increasing adoption in recent years, with companies like PayPal incorporating them into their operations as the digital asset industry continues its integration into mainstream finance.

Other developments from Coinbase In July 2024, Coinbase rolled out a new Wallet web application to offer users a unified platform for managing their entire on-chain digital assets portfolio. The web app allows users to connect multiple wallets, creating the ‘ultimate hub for everything on-chain.’ According to a statement from Coinbase executives, the platform aims to be a ‘one-stop destination’ for interacting with people, communities, and businesses within the blockchain ecosystem. At the time, officials from Coinbase said that user feedback played a significant role in the development of the new platform.

This feedback highlighted the need for an easy-to-use hub where users can manage their crypto assets and stay updated on blockchain activities. Source: Link .