Coinbase will delist USDT, PYUSD, and DAI for users in Europe

What’s new? On December 13, the leading US-based centralized crypto exchange (CEX) Coinbase will delist several fiat-pegged stablecoins for European users. Trading will be halted for USDT, PAX, PYUSD, GUSD, GYEN, and DAI assets as they are not compliant with the Markets in Crypto-Assets (MiCA) regulation, which is being phased in across the bloc.

Source: X.com

What else is known? The changes will not affect stablecoins from issuer Circle with pegs to the dollar and euro: USDC and EURC. Coinbase was directly involved in the development of USDC and is now actively using the coin in its operations.

In a letter to European clients, the exchange explained that the changes concern retail clients of platforms operated by Coinbase Europe Limited and Coinbase Germany GmbH. The company recommended converting all stablecoins subject to delisting into USDC and EURC by the above date, or transfer them from the platform to their own non-custodial wallet.

Meanwhile, on December 1, Coinbase also phased out its rewards program for USDC holders in the European Economic Area (EEA), citing MiCA.

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The Algorand Foundation, a non-profit organization behind the Algorand blockchain with the ALGO native token, issued a statement regarding the changes. The team stressed that USDC on Algorand will remain available in the EEA, and also highlighted Quantoz, which holds a license to issue e-money in Europe and acts as the issuer of the Algorand-based EURD stablecoin.

Source: X.com

Coinbase announced the cessation of trading of non-MiCA compliant stablecoins back in early October. MiCA is a comprehensive regulatory framework for regulating various aspects of the cryptocurrency industry and bringing the rules in the bloc’s member countries to a uniform standard.

It requires, among other things, the registration of crypto firms in at least one EU state, allowing them to operate throughout the bloc.

Crypto exchange Bitstamp stopped trading EURT in the EU as early as June 30, and on July 1, the Uphold platform took similar actions with regard to USDT, DAI, FRAX, GUSD, USDP, and TUSD.

The head of Tether, which issues USDT and EURT, stated that MiCA could make it more difficult for stablecoin issuers to operate, as well as increase the risks of using such assets with a license.

USDT is the largest stablecoin on the crypto market, in terms of capitalization it is second only to bitcoin and Ethereum with a value of $139,8 billion.