Coinbase Takes Action to Comply with EU Regulations on Stablecoins
As of December 30, 2024, Coinbase has announced plans to remove all stablecoins that do not adhere to the European Union's Markets in crypto-Assets (MiCA) regulations. This decision will have a significant impact on the European Economic Area (EEA) and is in response to the region's new regulatory framework, particularly targeting unauthorized stablecoins like Tether (USDT).
Europe Tightens Rules on Coinbase Stablecoins
Coinbase will be implementing restrictions on services involving unauthorized stablecoins, including USDT, across the EEA starting December 30. This move comes as the European Union fully enforces MiCA regulations, which mandate that stablecoin issuers obtain e-money authorization in at least one EU member state.
While stablecoin regulations have been in effect since June 2024, broader crypto regulations will come into Play by December 31.
The impending changes will notably affect Coinbase's stablecoins, such as USDT, which have not yet received approval for use within the EEA. Other Exchanges like OKX and Bitstamp have already taken steps to limit access to non-compliant stablecoins in anticipation of the regulatory shift.
Coinbase will be providing further updates in November to inform users of their options to convert non-compliant stablecoins into compliant alternatives like Circle's USDC, which already meets the requirements set forth by MiCA.
A representative from Coinbase emphasized the company's dedication to compliance, stating, "We intend to restrict services to EEA users related to stablecoins that fail to meet MiCA requirements by December 30, 2024."
These new regulations are expected to prompt significant changes in how Coinbase operates in Europe, with a substantial impact on stablecoins that do not meet the criteria. Users will have the opportunity to transition to compliant alternatives, allowing Coinbase to maintain a strong presence in the regulated Market.
Coinbase Secures Partial Victory in Legal Battle with SEC
In addition to the upcoming regulatory adjustments in Europe, Coinbase has recently achieved a partial Win in its ongoing Legal dispute with the U.S. Securities and Exchange Commission (SEC).
A federal judge granted the Exchange access to crucial documents related to the classification of tokens as securities. The ruling, issued by Judge Katherine Failla of the Southern District of New York on September 5, 2024, partially approved Coinbase's request for these documents.
The case revolves around the SEC's enforcement action, alleging that Coinbase operated as an unregistered securities Exchange. Paul Grewal, Coinbase's Chief Legal Officer, expressed that the court's decision will lead to vital discoveries regarding the SEC's view on Digital assets.
Coinbase had sought internal documents pertaining to the SEC's application of securities laws to cryptocurrencies, including statements made by SEC Chair Gary Gensler.
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