According to information from Algorand, Coinbase has begun notifying European customers that it will apply limits on stablecoins that do not meet Markets in Crypto Assets (MiCA) standards from tomorrow.
The company pointed out two stablecoins that are still available: Quantoz’s EURD and Circle’s USDC. Tether’s withdrawal from European markets has significantly affected both assets.
Coinbase Prepares for MiCA
This news was revealed by Algorand Foundation, a blockchain and Cryptocurrency that uses a proof-of-stake mechanism. Algorand posted the announcement from Coinbase directly via a post on social media and lists MiCA-compatible stablecoins that users can switch to. Both of these options, Circle and Quantoz, are embarking on a new battle for stablecoin dominance in the EU.
“Dear Customers, a reminder that, due to new MiCA regulations, Coinbase will be implementing limits on stablecoin offerings that do not meet MiCA standards. Based on the latest information, we expect to have to limit services to the following assets: USDT, PAX, PYUSD, GUSD, GYEN, and DAI,” Coinbase stated in its announcement.
MiCA is a comprehensive new regulatory framework for Crypto assets in the EU, and its emergence is creating dramatic new market opportunities. Before this time, Tether was the dominant stablecoin in this market, but it soon proved that this stablecoin giant could not meet the requirements. Some companies see this as an opportunity to take Tether’s market share.
For its part, Tether is acting strategically. On one hand, the company sharply reduced its EU operations in November. The company also invested heavily in Quantoz, which launched one of two MiCA-compatible stablecoins that Algorand identified. The other approved asset, Circle’s USDC, represents a direct attempt to take over Tether’s old turf.
Yesterday, Binance announced a partnership with Circle, seemingly for European expansion. Coinbase partially owns Circle, so this public action comes even though the two major exchanges are rivals. With their combined capital and resources, the pair could make strong strides in the EU market.
However, for non-stablecoin Cryptocurrency companies like Algorand, this “MiCA market” opportunity may not impact regular operations. The company has had an impressive growth spurt in recent months, and their announcement confirms that users can seamlessly use USDC or EURD from Quantoz.
In other words, this “MiCA market” opportunity is having a trickle down effect on companies like Algorand. Its users can enjoy the same experience, and whether Tether can restore its market dominance is not the company’s concern.
