Coinbase to Delist USDT, PYUSD and Other Stablecoins by Dec. 13

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The European cryptocurrency landscape is undergoing a major regulatory shift as Coinbase prepares to delist several prominent stablecoins—including USDT, PYUSD, GUSD, DAI, and others—by December 13, 2024. This move aligns with the European Union’s landmark Markets in Crypto-Assets Regulation (MiCA), which mandates strict compliance for all stablecoin issuers operating within the European Economic Area (EEA).

As the deadline looms, crypto exchanges are swiftly adjusting their offerings to remain compliant. This article breaks down the implications of MiCA, the reasoning behind Coinbase’s decision, and what it means for users holding non-compliant stablecoins.

What Is Happening on December 13?

Starting December 13, 2024, Coinbase Europe, Coinbase Germany, and Coinbase Custody International will cease support for multiple stablecoins that do not meet MiCA’s regulatory requirements. Affected assets include:

These digital assets will no longer be tradable or withdrawable for EEA-based users unless converted into compliant alternatives. Coinbase will continue to support USDC and EURC, both issued by Circle, which have already aligned with MiCA standards.

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Why Is Coinbase Delisting These Stablecoins?

The delisting is a direct response to MiCA’s enforcement timeline. Under the new framework, all stablecoins marketed or used in the EEA must obtain authorization from a national regulator and hold an electronic money institution (EMI) license. Without such approval, stablecoins are deemed non-compliant and cannot be legally offered on regulated platforms.

Coinbase has emphasized its commitment to regulatory compliance, stating it will block access to non-compliant stablecoins for EEA customers by December 30, 2024. This proactive approach aims to avoid legal risks and ensure long-term operational stability in Europe.

Is USDT Compliant With MiCA?

Tether’s USDT, the world’s largest stablecoin by market cap, remains in regulatory limbo. While Tether has engaged with EU authorities, the European Securities and Markets Authority (ESMA) has not yet issued formal approval. CEO Paolo Ardoino has publicly questioned certain aspects of MiCA but affirmed that Tether is actively working on solutions to meet European standards.

Despite this uncertainty, Tether has taken steps to align with the new rules. It recently paused issuance of its euro-backed stablecoin EURt and is now supporting EURq and USDq, issued by Quantoz Payments, a MiCA-compliant Dutch fintech firm.

However, until ESMA grants formal recognition, USDT remains at risk of exclusion from major European exchanges.

How Are Other Exchanges Responding?

Coinbase isn’t alone in its compliance push. Several major platforms have already begun restricting non-compliant stablecoins:

Even Binance has signaled potential restrictions. Marina Parthuisot, Legal Head at Binance France, noted that the lack of approved stablecoin issuers poses a significant challenge. The exchange may delist unregulated stablecoins if no grace period is introduced.

This coordinated industry shift underscores the seriousness of MiCA and its potential to reshape the European crypto ecosystem.

What Is MiCA and Why Does It Matter?

The Markets in Crypto-Assets Regulation (MiCA), finalized in June 2024, marks a historic milestone as the EU becomes the first major economy with comprehensive crypto legislation. Its goals are clear:

Under MiCA, crypto firms can apply for a “passport” license to operate across the entire EU—eliminating the need for country-by-country approvals. However, strict rules apply, especially for asset-referenced tokens (ARTs) like stablecoins.

To remain listed, stablecoin issuers must:

These requirements aim to increase transparency and trust—but also raise the barrier to entry for many existing projects.

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FAQ: Understanding MiCA and the Stablecoin Delistings

Q: Which stablecoins will still be available on Coinbase after December 13?

A: As of now, USDC and EURC—both issued by Circle—are fully compliant with MiCA and will remain supported. Users are encouraged to convert non-compliant holdings into these alternatives before the deadline.

Q: Can I still hold USDT in my wallet after delisting?

A: Yes, you can hold USDT in personal wallets, but you won’t be able to trade, deposit, or withdraw it through Coinbase or other regulated European exchanges unless it gains MiCA approval.

Q: Will Tether (USDT) eventually comply with MiCA?

A: Tether is actively working toward compliance and has partnered with EU-based firms like Quantoz. However, final approval rests with ESMA, and no official timeline has been confirmed.

Q: Does MiCA apply outside the EU?

A: MiCA directly applies only to entities operating within the European Economic Area (EEA). However, its influence is global—many issuers are adjusting their models to meet EU standards due to the region’s economic weight.

Q: What happens if no stablecoins get approved under MiCA?

A: While unlikely, a lack of approved issuers could lead to temporary market disruption. Regulators may introduce transitional measures, but exchanges are preparing for full enforcement without delays.

Q: Are decentralized stablecoins like DAI affected?

A: Yes. Despite being algorithmic or decentralized, DAI is classified as an asset-referenced token under MiCA and requires compliance. MakerDAO has not yet confirmed formal authorization.

The Bigger Picture: Regulatory Clarity vs. Innovation

MiCA represents a double-edged sword. On one hand, it brings much-needed regulatory clarity, reducing uncertainty for institutional investors and traditional financial players. On the other, it risks excluding innovative or decentralized projects that struggle to meet centralized licensing demands.

For users, the message is clear: compliance is no longer optional. As exchanges clean up their listings, only regulated, transparent, and audited assets will survive in the European market.

Final Thoughts

The December 13 delisting deadline marks a pivotal moment for crypto in Europe. With Coinbase, Binance, and others enforcing MiCA compliance, the era of unregulated stablecoins on major platforms may be ending.

Holders of USDT, PYUSD, DAI, and similar tokens must act quickly—converting assets or risking reduced liquidity and access. Meanwhile, issuers face a race against time to meet EU standards or lose access to one of the world’s most important financial markets.

As regulation evolves, staying informed is key. Whether you're a trader, investor, or developer, understanding MiCA’s impact will help you navigate the future of digital finance in Europe.

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