Coinbase will remove certain stablecoins from its platform in the European Economic Area (EEA) by the end of the year. The company made the announcement today (Friday), citing upcoming regulatory changes in the region.

Stablecoins are digital assets designed to maintain a stable value by being tied to a fiat currency or other asset. These tokens have become popular in recent years due to their relative price stability compared to other .

MiCA Enforces New Requirements

The European Union's Markets in Crypto-Assets (MiCA) regulation, introduced in 2023, is scheduled to take full effect in December. The imposes strict requirements on stablecoin issuers, including transparency, liquidity, and consumer protection standards.

Coinbase has said it will provide its affected EEA customers with the option to switch to stablecoins issued by authorized firms. These options will include Circle's USDC and EURC, which are tied to the US dollar and euro, respectively.

The use of stablecoins has increased significantly, with major financial firms such as PayPal integrating them into their offerings.