Unauthorized Stablecoins Face Delisting From Coinbase’s EU Exchange Due to MiCA Regulations

Not all stablecoins have managed to get the necessary licenses in the EU. In July Circle became the first global stablecoin issuer to secure an Electronic Money Institution license in the region and is the second-largest issuer of stablecoins. Tether, which is the largest issuer of stablecoins, doesn’t have an e-money license in the EU.

Tether said that it commends EU for their efforts with creating MiCA but noted that it introduces some complexities for stablecoins operating in the region. “Tether commends EU regulators for their efforts in establishing a structured framework, as it plays a key role in fostering growth within the sector. However, as we have consistently expressed, some aspects of MiCA make the operation of EU-licensed stablecoins more complex and potentially introduce new risks to both local banking infrastructure and stablecoins themselves,” a spokesperson for the stablecoin issuer told CoinDesk in a statement.

“To address these challenges to support users in the region, Tether is developing a technology-based solution, which we will unveil in due course and will be tailor made to serve the necessities of the European market,” the spokesperson added.