{"id":17550,"date":"2024-10-05T16:59:18","date_gmt":"2024-10-05T13:59:18","guid":{"rendered":"https:\/\/forklog.com\/en\/coinbase-to-restrict-access-to-certain-stablecoins-in-the-eu\/"},"modified":"2024-10-05T16:59:18","modified_gmt":"2024-10-05T13:59:18","slug":"coinbase-to-restrict-access-to-certain-stablecoins-in-the-eu","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/coinbase-to-restrict-access-to-certain-stablecoins-in-the-eu\/","title":{"rendered":"Coinbase to Restrict Access to Certain Stablecoins in the EU"},"content":{"rendered":"<p>Coinbase users in the European Union will lose access to stablecoins that do not comply with the <span data-descr=\"Markets in Crypto Assets\" class=\"old_tooltip\">MiCA<\/span> legislation. This was reported by <a href=\"https:\/\/www.theblock.co\/post\/319580\/coinbase-to-delist-non-compliant-stablecoins-in-eu-following-implementation-of-mica-guidelines\">The Block<\/a>, citing a statement from the cryptocurrency exchange.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201cGiven our compliance obligations, we intend to restrict services to users in the [<span data-descr=\"European Economic Area\" class=\"old_tooltip\">EEA<\/span>] for stablecoins that do not meet MiCA requirements by December 30, 2024,\u201d the statement reads.<\/cite><\/p><\/blockquote>\n<p>The legislation requires stablecoin issuers to obtain a license from a competent authority of an EU member state and to hold at least 60% of reserves in EU bank accounts.<\/p>\n<p>The issuer of the largest stablecoin, USDT \u2014 Tether \u2014 has yet to obtain the relevant license, <a href=\"https:\/\/forklog.com\/en\/news\/circle-secures-first-mica-compliant-stablecoin-license\">unlike its closest competitor Circle<\/a>, which, together with Coinbase, backs USDC.<\/p>\n<p>In August, Tether CEO Paolo Ardoino <a href=\"https:\/\/forklog.com\/en\/news\/tether-ceo-criticises-mica-as-a-threat-to-stablecoins-and-banking\">called MiCA a threat to stablecoins<\/a> and the banking system. He highlighted the vulnerability of such financial institutions, citing the collapse of Silicon Valley Bank, which led to the USDC depeg.<\/p>\n<p>He also emphasized that deposits in the EU are insured up to $100,000. According to the Tether CEO, this is insufficient for large issuers.<\/p>\n<p>The total market capitalization of stablecoins at the time of writing is $173.6 billion, according to <a href=\"https:\/\/www.coingecko.com\/en\/categories\/stablecoins\">CoinGecko<\/a>. The undisputed leader remains USDT ($119.6 billion), followed by USDC ($35.5 billion) and DAI ($5.8 billion).<\/p>\n<p>In July, the cryptocurrency exchange Uphold <a href=\"https:\/\/forklog.com\/en\/news\/regulatory-era-eu-to-exclude-stablecoins-south-korea-targets-altcoins\">ceased support<\/a> for USDT, DAI, FRAX, GUSD, USDP, and TUSD for users in the EEA to comply with MiCA requirements.<\/p>\n<p>Previously, similar warnings regarding \u201cunregulated stablecoins\u201d were issued to clients of <a href=\"https:\/\/forklog.com\/en\/news\/binance-to-restrict-access-to-certain-stablecoins-in-the-eu\">Binance<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/okx-to-remove-usdt-trading-pairs-in-europe-reports-suggest\">OKX<\/a>. Kraken also announced its intention to consider the necessity of delisting USDT in the EU.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase users in the European Union will lose access to stablecoins that do not comply with the MiCA legislation. This was reported by The Block, citing a statement from the cryptocurrency exchange. \u201cGiven our compliance obligations, we intend to restrict services to users in the [EEA] for stablecoins that do not meet MiCA requirements by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,733,1483,807],"class_list":["post-17550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-europe","tag-mica","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"5","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=17550"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17550\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/17549"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=17550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=17550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=17550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}