Coinbase Removes USDT for EU Users Over MiCA Rules

[IceLincoln]

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



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.

[Oshosondy]

Coinbase delisted wBTC not quite long. All because of regulation to favour their new stable coin pegged to bitcoin price. Now it is MiCA regulation which want them to delist all stable coin except the once that belongs to Circles which they have stakes in.

I wished to use Coinbase before. It was one of the exchanges I wished to use. But it was restricted in my country that time. There are better exchanges like Binance, Bybit, Bitget, Mexc and many other exchanges that I can use. There are alternatives.

Or are other exchanges like Kraken want to delist the fiat stable coins also?

[Botnake]

Just for clarification, so readers won’t be misled:

This advisory only applies to exchanges operating in Europe, as the European Union's Markets in Crypto-Assets (MiCA) regulation has jurisdiction there. As of now, Coinbase operates in other regions as well, and these regions are not affected:

North America
Asia-Pacific
Latin America and Africa

[cryptoaddictchie]

It seems it cant be helped since USDT has been affected by this. Anyway rules are rules, and some crypto users within the scope of this announcement will likely be dissapointed. Maybe Tether can process whats needed in the requirement of MICA thats why I am more bullish on usdc than tether which is known to be scary in competitions of the stablecoins.

[dzungmobile]

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

They can delist a crypto and relist it later, Coinbase are simply doing things to defend themselves first. When risk gone like Tether complies with MiCA, Coinbase will relist USDT for their users again.

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's only about Compliance.

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

Prefer USDT or not, prefer USDC or any other stable coin, people must know that all stable coins are risky.
PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets

[BIT-BENDER]

Just for clarification, so readers won’t be misled:

This advisory only applies to exchanges operating in Europe, as the European Union's Markets in Crypto-Assets (MiCA) regulation has jurisdiction there. As of now, Coinbase operates in other regions as well, and these regions are not affected:

North America
Asia-Pacific
Latin America and Africa

Yes mate I think the title of the post and the body of the post makes that very clear enough. My country almost had same issue when binance removed the naira option as user can not trade crypto-currency to Naira.
But even when binance removed the Naira option this wasn't a problem as people shifted to several exchanges. I don't this one exchange can control things as users can very much easily shift to another good exchange and move on, so to me in the long run it's a loss for Coinbase.

[Cryptomultiplier]

I also prefer to use USDT, but USDC is still a good option for users who do not want to leave the coin base platform, otherwise, there should be other well known exchanges that can trade efficiently and with the USDT as a strong value for converting crypto to stable coins.
Regulations have to be followed or such an erring company may have to face lawsuit like what happened to Binance in Nigeria, both with the arrest of its officials, fine and delisting of more than one trading pairs.

[Hamza2424]

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

I know once there was a time when some Coinbase listed coins which were too few considered as Alpha coins but from a long time in my views from 3 to 4 years there are many coins on Coinbase that are super shity and dead as well.

Anyway I had a Coinbase account long time ago but due to their regulatory changes they removed my account and noticed me to withdraw funds, from that timeline even before that timeline I got Binance as my first choice haha in that coinbase era I use to list coinbase above Binance due some decent features which I don't even remember now.

Anyway, such regulatory changes impact userbase.

[Familian]

From the date on the image from the op the date of announcement to the stablecoins changes taking effect the time is in my view very short for notice. Not so many users could be aware of this changes in a timeframe of between 11th to 13th december. Not everyone get to login to their exchange app everyday, what might be the fate of those who fail to get this information before the given date of expiration?

[dkbit98]

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

I warned everyone that this could happen, and I think other big centralized exchanges are going to continue doing the same thing soon.
It is better not to keep anything in USDT long term. just for short term trade and use only non-custodial wallets.
Recentčy I saw coinbase not even allowing customers to withdraw any coins from their own account... for ''protection'' they say, this is how bad they are  
I hope people will understand that centralized exchange are worse than banks.

[BlackBoss_]

I warned everyone that this could happen, and I think other big centralized exchanges are going to continue doing the same thing soon.
It is better not to keep anything in USDT long term. just for short term trade and use only non-custodial wallets.
Recentčy I saw coinbase not even allowing customers to withdraw any coins from their own account... for ''protection'' they say, this is how bad they are  
I hope people will understand that centralized exchange are worse than banks.

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.
https://dune.com/phabc/stablecoins---banned-addresses
https://duneanalytics.com/phabc/usdt---banned-addresses
https://duneanalytics.com/phabc/usdc-banned-addresses

The safest choice against centralization, censorship, freeze is only Bitcoin, stable coins are not safe choices.

[Botnake]

Yes mate I think the title of the post and the body of the post makes that very clear enough. My country almost had same issue when binance removed the naira option as user can not trade crypto-currency to Naira.
But even when binance removed the Naira option this wasn't a problem as people shifted to several exchanges. I don't this one exchange can control things as users can very much easily shift to another good exchange and move on, so to me in the long run it's a loss for Coinbase.

I guess that issue mainly affects your country. USDT, on the other hand, is a global stablecoin and the largest in terms of trading pair volume. If the Naira doesn’t work with Binance, you can always look for other exchanges that still accept it.

Even without other exchanges, you can still trade on Binance. You’d just need to make a P2P transaction first or use whatever platform you’re currently using to get crypto, then send it to Binance to start trading. It’s just an extra step but still manageable.

[nickpap]

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.

You can use a DeFi like uniswap to swap the USDT, then send it back to coinbase and convert to fiat. It's not such a tragedy that coinbase has removed USDT from their exchange.

[Helena Yu]

Stable coins will die, welcome CBDC.

Of course USDC, EURC or any other currencies that launched by Centre will not affected, because Centre is a part of Coinbase. I think this will affect to other centralized exchanges, be careful if you hold USDT.

USD Coin (USDC) is a stablecoin issued by CENTRE — a joint venture between Coinbase and Circle.

[hugeblack]

This means more support for USDC which is considered more secure. Or use the decentralized version based on USDC which is DAI. 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?

[Porfirii]

Coinbase delisted wBTC not quite long. All because of regulation to favour their new stable coin pegged to bitcoin price. Now it is MiCA regulation which want them to delist all stable coin except the once that belongs to Circles which they have stakes in.

I wished to use Coinbase before. It was one of the exchanges I wished to use. But it was restricted in my country that time. There are better exchanges like Binance, Bybit, Bitget, Mexc and many other exchanges that I can use. There are alternatives.

Or are other exchanges like Kraken want to delist the fiat stable coins also?

I don't know about Kraken, but a platform based in Europe that I have been using for the last years has announced that they will also delist USDT starting in Jan 2025, until further notice. About USDC, on the other hand, they've never accepted it, so it is not a viable alternative for now.

I'm not sure whether MiCA directly bans these stablecoins: I think it's a gray area and until it's clarified, many platforms prefer to take precautions, even when they don't have a special interest in it like Coinbase allegedly does.

[BlackBoss_]

Stable coins will die, welcome CBDC.

Of course USDC, EURC or any other currencies that launched by Centre will not affected, because Centre is a part of Coinbase. I think this will affect to other centralized exchanges, be careful if you hold USDT.

USD Coin (USDC) is a stablecoin issued by CENTRE — a joint venture between Coinbase and Circle.

Is Coinbase safe with time?

Many centralized exchanges die and Coinbase can die too. I admit that Coinbase death will be very big shock for cryptocurrency market because they are a big centralized exchanges and they are custodian of many Bitcoin Spot ETFs.

Coinbase is not a favorite exchange by many people as I know, so I don't care about USDC.

[Botnake]

Stable coins will die, welcome CBDC.

Of course USDC, EURC or any other currencies that launched by Centre will not affected, because Centre is a part of Coinbase. I think this will affect to other centralized exchanges, be careful if you hold USDT.

USD Coin (USDC) is a stablecoin issued by CENTRE — a joint venture between Coinbase and Circle.

Is Coinbase safe with time?

Many centralized exchanges die and Coinbase can die too. I admit that Coinbase death will be very big shock for cryptocurrency market because they are a big centralized exchanges and they are custodian of many Bitcoin Spot ETFs.

Coinbase is not a favorite exchange by many people as I know, so I don't care about USDC.

Coinbase will remain as long as they comply with regulations, but the demand for USDT might drop if Tether Limited Inc. fail to meet the requirements set by regulators. That said, it shouldn’t be too hard for them to comply, as the requirements are clear. As for whether USDT is safe, it’s reportedly backed by fiat, which is why traders have high confidence in it, giving it the largest trading volume among stablecoin competitors, so the answer is yes.

This issue is currently limited to the EU. However, it could serve as a warning for them to act quickly, as there’s a possibility the US might follow a similar path. ( high business risk spotted).

[Saint-loup]

Surprisingly or not, they ask their customers to exchange them or to withdraw them to a "self-custody wallet under your control" but they don't suggest them to transfer them to another platform...
Besides that medias and people, including this thread, only talk about USDT but as we can see here, all stable coins are concerned actually, except USDC(and EURC) as it seems. If USDT is not able to comply with MICA I'm afraid it won't stay the largest stablecoin for a long time, since USDC is already the only coin allowed on some big platforms like Polymarket for example.

[JiiBs]

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

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.