Tether (USDT) Will Be Delisted From Coinbase’s European Platforms Starting Tomorrow

Tether’s USDT, along with five other stablecoins, will be delisted from Coinbase’s European platforms starting tomorrow

Coinbase is set to delist six stablecoins, including Tether’s USDT, from its European platforms starting tomorrow. This follows the upcoming implementation of the European Union’s crypto-asset regulations, known as MiCA, on December 30, 2024.

According to a Coinbase spokesperson, “Based on the latest information, we currently anticipate we will be obliged to restrict services of the following assets: USDT, PAX, PYUSD, GUSD, GYEN and DAI,” none of which meet the requirements under MiCA.

However, Coinbase will continue to support USD Coin (USDC) and EURC, the euro-backed stablecoin, as they fulfill the necessary criteria.

The MiCA rules, which were established on June 30th, 2024, stipulate that stablecoin issuers must obtain an e-money license to operate within the European Economic Area (EEA). Currently, Tether does not hold this license, although discussions on the matter are underway.

Coinbase had previously notified users in October 2023 of the potential delistings for non-compliant assets. Those who hold the affected stablecoins will be able to convert their holdings to USDC to maintain access to services.

The firm also noted that it may reconsider re-enabling services for stablecoins that eventually achieve MiCA compliance.

This move is expected to affect the liquidity of the European crypto market, considering that USDT is among the most widely used stablecoins globally. However, such a decision could also present an opportunity for USDC and other compliant stablecoins to bolster their market share in the region.

Meanwhile, Tether has expressed confidence in navigating the evolving regulatory landscape. However, if it fails to obtain the necessary license to comply with MiCA, further delistings from EU exchanges are likely to follow.

In a statement, Tether said “It is confident it will successfully navigate these changes, ensuring that its efforts to drive financial inclusion and innovation continue to thrive, particularly in regions with limited or inefficient access to traditional financial systems”

Tether CEO Paolo Ardoino has sharply criticized some exchanges for their “rushed actions.” Also Read: Coinbase to List PNUT Token, Price Soars 30%