Coinbase has announced plans to restrict European users from trading Tether (USDT) and other stablecoins starting December 13. The move is part of its effort to comply with the European Union’s Markets in Crypto-Assets (MiCA) framework, which aims to regulate digital assets across the region.
Stablecoins Affected by the Delisting
Alongside Tether, Coinbase will delist PAX, PYUSD, GUSD, GYEN, and Maker’s DAI, citing their noncompliance with MiCA regulations. However, Circle’s stablecoins, USDC and EURC, will remain available for trading. Circle previously obtained a European stablecoin license, marking a significant step under the new MiCA laws.
Coinbase has indicated that Tether and the other delisted tokens could return to the platform if they meet MiCA compliance standards in the future.
Regulatory Pressure and Tether’s Uncertain Future
Observers have long speculated about Tether’s standing in Europe due to MiCA’s impending enforcement. While Tether CEO Paolo Ardoino stated the company’s intention to continue serving EU users, details of its compliance strategy remain unclear. Ardoino previously noted that MiCA might pose risks to stablecoins, though he did not confirm any plans for a European market exit.
Tether remains the dominant stablecoin operator globally, with a $140 billion market cap and a circulating supply far exceeding its competitors. Despite the EU being a significant economic region, Tether’s primary markets are in Latin America and Southeast Asia.
Tether’s Global Strategy
While its European future is uncertain, Tether has diversified its operations globally. The company reported record profits this year, with investments in Bitcoin, mining infrastructure, and data centers. Additionally, Tether’s substantial holdings in U.S. Treasury Bills could position it as a key player in shaping American stablecoin policies.
Coinbase’s delisting underscores the challenges stablecoin operators face as jurisdictions like the EU tighten regulatory frameworks. The move also highlights the importance of compliance for platforms and issuers aiming to operate in regulated markets.
