Coinbase Removes USDT for EU Users Over MiCA Rules

[SquirrelJulietGarden]

This is the likely result from this policy change as,
I like to think that cryptocurrency users don’t enjoy it so much when exchanges and the site they operate on are always being subject to stiff regulations. Having to kick out all other stablecoins only to allow USDC? If makes me ask what’s at play here?
What’s the condition for which other stablecoins assets weren’t able to satisfy for which, USDC was able to? It’s just a regulation having to favor indigenous coin and that’s it. Don’t see how they wouldn’t have to comply but, are sure to loss customers in there numbers.

It is conflict of interest among cryptocurrency companies and exchanges. Many months ago, when Binance dominated market shares in cryptocurrency and centralized exchange market, other companies, centralized exchanges turned their swords against Binance. They don't accept BSC chain for deposit and withdrawal for several coins and some even don't accept BSC but they easily accept ERC20 chain.

This action from Coinbase is not strange, like when Binnance launched Binance Smart Chain, they gave free withdrawal fee of BUSD on BSC, but when they felt enough, they began to charge USDT-BEP20 withdrawal fees on users. Coinbase did similarly like Binance did in the past, and firstly it is for their exchange benefit. To get more users from other companies, centralized exchanges, and to force their users using USDC more.

[Zwei]

Coinbase did not clarify what will happen after the scheduled date, I expected USDT to be automatically converted to USDC? Or will it be deleted from the balance, frozen or withdrawal only option?

i guess they did that on purpose to keep their options open, but i don't think they will convert it to USDC forcefully (or they may do just that).
freezing balances is out of the question as it would put coinbase in a tough spot with users.

[suzanne5223]

When I first saw this topic, I asked myself if we still have people who have used Coinbase as a CEX platform ever since they integrated the provision of fund sources for EU countries years ago. I see them as one of the chronicle CEX we have in the cryptocurrency space so you guys shouldn't be surprised if they delist or introduce certain rules that will affect their users.

I'd like to offer a kind advice to everyone who may still use their platform: Move out of your fund. Otherwise, they will implement a regulation that will make it hard for you to access your fund, just like they did in 2017 or 2018, if I remember correctly.

Coinbase did not clarify what will happen after the scheduled date, I expected USDT to be automatically converted to USDC? Or will it be deleted from the balance, frozen or withdrawal only option?

i guess they did that on purpose to keep their options open, but i don't think they will convert it to USDC forcefully (or they may do just that).
freezing balances is out of the question as it would put coinbase in a tough spot with users.

Coinbase is always like this right from the get-go and if we see someone that's still using their platform on here I believe the person has not learn a perfect lesson.

[Lucius]

An expected move, given that the ECB and its head have repeatedly highlighted the so-called stablecoins as the biggest threat to the european currency. First they removed private coins, now they are removing stablecoins, and given their stance on Bitcoin, no one should be surprised by a new radical move in the future.

Still, maybe this will encourage people to use DEX and non-custodial wallets more.

Cryptocurrencies backed by fiat money are assets and should not be mistaken for currencies, said Christine Lagarde, president of the European Central Bank (ECB).

“Stablecoins are pretending to be a coin but, in fact, it’s completely associated with an actual currency. For instance, some of them are saying that they can be used for transactions, but the value will be exactly aligned to the dollar,” Lagarde said, referring to stablecoin issuers. “They present themselves as currencies, which they are not. So I think that we should all in the finance sector and at the regulatory level call a spade a spade,” Lagarde said.

[OcTradism]

An expected move, given that the ECB and its head have repeatedly highlighted the so-called stablecoins as the biggest threat to the european currency. First they removed private coins, now they are removing stablecoins, and given their stance on Bitcoin, no one should be surprised by a new radical move in the future.

Still, maybe this will encourage people to use DEX and non-custodial wallets more.

People will need open-source non-custodial wallets, DEX, and supportive tools for privacy.
No KYC exchanges.
Bitcoin security.
Bitcoin privacy.

I remember that the son of Largade is very pro-Bitcoin and pro-cryptocurrency that can be reason Largade is a strong anti-Bitcoin and -cryptocurrency.

[Lucius]

~snip~
I remember that the son of Largade is very pro-Bitcoin and pro-cryptocurrency that can be reason Largade is a strong anti-Bitcoin and -cryptocurrency.

Nothing strange, children still think differently from their parents, similar to how a son from Peter Schiff has a completely opposite opinion about BTC than his father. In a way, this is proof that BTC has far more success with the younger population, while the older ones remain loyal to some other things. It is not for nothing that they say that the iron is struck while it is hot - or that an old horse cannot be taught new tricks.

[OcTradism]

Nothing strange, children still think differently from their parents, similar to how a son from Peter Schiff has a completely opposite opinion about BTC than his father. In a way, this is proof that BTC has far more success with the younger population, while the older ones remain loyal to some other things. It is not for nothing that they say that the iron is struck while it is hot - or that an old horse cannot be taught new tricks.

Children is future of any country, and the whole world, it's fact and children should be treated with as best resources as parents have, as a nation and the world have, because future belongs to them, not to the elderly.

Bitcoin demographics shows it too, the young people dominate it than the elderly.
https://coin.dance/stats#demographics
https://coin.dance/stats/age
Only 4.5% for 65+ age group, and 6.6% for 55-65 age group.

[dkbit98]

Tether is not going to stop because of this new MiCA rules, now they are investing in another stable coin project called StablR to promote stablecoin adoption in Europe.
This stablr.com is advertising as Regulated and European, with EURR and USDR tokens on ethereum and solana chain.
It's not only Tether with problems, exchanges started delisting other stable coins,including DAI.
https://cryptobriefing.com/european-stablecoin-adoption-tether-investment/

[Pleasant_Tree]

This is great news to raise attention to the extreme risk of the unaudited scam, USDT. Why does anyone still prefer to use that dangerous pile of junk?

Coinbase has announced the delisting of USDT and several other stablecoins for EU users to comply with MiCA regulations.

https://talkimg.com/images/2024/12/12/ppEsJ.jpeg

Though Support for USDC and EURC are unaffected.
I think this could help coinbase gain some market share in that their own stable coin USDC will gain more traction and thereby increase revenue.

It can also make clients who use their crypto space move out thereby causing them losses,
Because most people prefer to use USDT.

[Rikafip]

Tether is not going to stop because of this new MiCA rules, now they are investing in another stable coin project called StablR to promote stablecoin adoption in Europe.

Its expected, that they will adjust somehow as EU is too big of a market to lose.

Why does anyone still prefer to use that dangerous pile of junk?

That's a good question, but probably because after so many years of listening about tether being scam and just about to collapse, nothing really happened. And because it managed to remained pegged with USD for the vast majority of its existence (iirc, last big drop they had back in 2018).

[dkbit98]

Its expected, that they will adjust somehow as EU is too big of a market to lose.

In the end they will just rebrand and have totally new name but same people are going to be behind the scenes.
Question is if EU and other regulators would tolerate this, or they will add some restrictions for doing this.
My advice is to stay away from ALL stable coins, and don't hold them long term.

[NeuroticFish]

This is great news to raise attention to the extreme risk of the unaudited scam, USDT. Why does anyone still prefer to use that dangerous pile of junk?

Good point, however, I don't feel that Coinbase does this only because of MiCA.
I think that they are actually happy USDC they've supported from second one gains a bigger market share.

[IceLincoln]

Its expected, that they will adjust somehow as EU is too big of a market to lose.

In the end they will just rebrand and have totally new name but same people are going to be behind the scenes.
Question is if EU and other regulators would tolerate this, or they will add some restrictions for doing this.
My advice is to stay away from ALL stable coins, and don't hold them long term.

Tether has been under serious scrutiny and regulation issues from the US and other European countries. I think they wouldn’t want to further add to their problems, they will jus find a good way out. They’ve been here a while now dominating the stable coin space, they’ll jus get better and stronger.

[NotATether]

It is even not safe to store USDT and other stable coins in your non custodial wallets. Because Tether can seize USDT in your non custodial wallets. There are many banned addresses on stable coins.

Tether is just a bank that doesn't follow regulations.

We all know how those end out.

[DaveF]

IMO what is also interesting is that they are also blocking GUSD (Gemini dollar) according the the image in the 1st post.

According to https://www.gemini.com/dollar GUSD even passed New York State Department of Financial Services (NYDFS) tests and is regulated by them.

So is blocking that legit? Or a FU to a competitor? Or both? since they are keeping THEIR stablecoin.

-Dave

[hd49728]

IMO what is also interesting is that they are also blocking GUSD (Gemini dollar) according the the image in the 1st post.

According to https://www.gemini.com/dollar GUSD even passed New York State Department of Financial Services (NYDFS) tests and is regulated by them.

So is blocking that legit? Or a FU to a competitor? Or both? since they are keeping THEIR stablecoin.

It is their platform and I don't think it is wrong legally and regulationally if a company does not list a predictor competitor on their platform.

I can be wrong because there are already lawsuits against Facebook, Google, Apple on this. If it is prohibited by laws a d regulations and if GUSD is legally by USA law and New York state law, Coinbase can be sued in future and they have high risk to fail at courts too.

In business, their action is explainable but in law aspect, I am unsure about this action.

[DaveF]

IMO what is also interesting is that they are also blocking GUSD (Gemini dollar) according the the image in the 1st post.

According to https://www.gemini.com/dollar GUSD even passed New York State Department of Financial Services (NYDFS) tests and is regulated by them.

So is blocking that legit? Or a FU to a competitor? Or both? since they are keeping THEIR stablecoin.

It is their platform and I don't think it is wrong legally and regulationally if a company does not list a predictor competitor on their platform.

I can be wrong because there are already lawsuits against Facebook, Google, Apple on this. If it is prohibited by laws a d regulations and if GUSD is legally by USA law and New York state law, Coinbase can be sued in future and they have high risk to fail at courts too.

In business, their action is explainable but in law aspect, I am unsure about this action.

It's the fact that they are calling it a MiCA restricted asset. Coinbase can easily say we are not trading in GUSD, because we don't like it.
The fact that they are saying a token regulated by the NYDFS is not regulated just seems to be a bit strange. But hey, it's their platform they can do what they like with it.

-Dave