Starting tomorrow, Coinbase will implement restrictions on non-compliant stablecoins under MiCA, such as USDT, PAX, PYUSD, and DAI.
Coinbase has begun informing its European clients that it will commence restricting stablecoins that do not satisfy the Markets in Crypto Assets (MiCA) requirements tomorrow, according to Algorand.
The company has identified two stablecoins that are still available: EURD from Quantoz and USDC from Circle. The European exit of Tether has a significant impact on both assets.
The Algorand Foundation, a cryptocurrency and proof-of-stake blockchain, has disclosed this information. Algorand published their notice from Coinbase on social media and provided a list of stablecoins that are MiCA-compliant and that users can transition to. In a new battle for EU stablecoin dominance, both Circle and Quantoz are involved.
“Dear Client, we would like to remind you that Coinbase will impose restrictions on stablecoin services that do not comply with the new MiCA regulation.” Coinbase stated in its notice that it anticipates the necessity of restricting services for the following assets: USDT, PAX, PYUSD, GUSD, GYEN, and DAI, based on the most recent information.
MiCA is a new regulatory framework that encompasses all aspects of cryptoassets in the European Union. Its implementation is generating significant market opportunities. Tether was the preeminent stablecoin in this market prior to this year; however, it became apparent that the stablecoin colossus would not be able to meet compliance. Numerous organisations regard this moment as an opportunity to surpass Tether’s market share.
On the other hand, Tether is conducting itself in a strategic manner. One the one hand, it significantly reduced EU operations in November. Algorand identified two stablecoins that were MiCA-compliant, and the company also made a significant investment in Quantoz, which launched one of them. Circle’s USDC, the other asset that has been authorised, is an attempt to directly encroach on Tether’s former territory.
Binance announced a partnership with Circle yesterday, purportedly to facilitate its expansion in Europe. This public gesture was made in spite of the antagonism between these two enormous exchanges, as Coinbase partially owns Circle. The duo has the potential to make substantial progress in the EU market due to their combined capital and resources.
Nevertheless, this “MiCA market opportunity” may not affect the regular operations of non-stablecoin crypto firms such as Algorand. In the past few months, the company has experienced a remarkable resurgence, and its announcement indicated that users could seamlessly utilise either USDC or EURD from Quantoz.
In other terms, the “MiCA market opportunity” is having a reduced impact on companies such as Algorand. The firm is not concerned with whether or not Tether can regain its market dominance; its consumers can enjoy the same experience.
Also Read: Former Grayscale CEO Michael Sonnenshein becomes Securities COO
