Overview of New EU Crypto Regulations
Key Highlights
- The EU’s Markets in Crypto-Assets (MiCA) regulation, introduced in June, will be effective from December 30, 2024.
- Coinbase will inform EU customers in November about how to convert to compliant stablecoins.
- Circle has successfully obtained the first e-money license under MiCA regulations.
Coinbase has announced plans to discontinue stablecoins that do not comply with the EU’s MiCA regulations by the deadline of December 30, 2024. This action primarily affects clients in the European Economic Area (EEA) as part of a broader initiative to enforce stricter controls over cryptocurrency assets.
Understanding MiCA Regulations
MiCA, which was first introduced in June 2024, mandates that stablecoin issuers secure e-money authorization from at least one EU member state. The goal of this regulation is to enhance the safety of European investors against fraud and to promote innovation and economic competitiveness within the crypto sector.
Coinbase’s Compliance Commitment
A spokesperson from Coinbase commented:
“In line with our commitment to compliance, we will restrict services related to stablecoins that do not comply with MiCA by the end of December 2024.”
Future Steps for Coinbase Customers
Coinbase plans to provide an update in November for its EU users, detailing options for converting existing stablecoins into compliant alternatives, such as Circle’s USDC and Euro Coin (EURC).
Other Exchanges Adapting to MiCA
Coinbase is not alone in making these changes. Other exchanges like Bitstamp, OKX, and Uphold are also taking measures to restrict access to stablecoins that do not align with MiCA regulations, including notable tokens like Tether’s USDT. For instance, Bitstamp announced in June that it would remove USDT to ensure compliance with the new regulations.