Coinbase sets 3-day MiCA deadline for USDT, PayPal and Trump-linked stablecoins
Affected retail balances will convert at market rates, with USDC used where suitable and late deposits excluded. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Coinbase will automatically convert 14 restricted crypto tokens held by European customers on Oct. 30, including Tether's USDT.
The exchange said in a customer notice that affected retail users in the European Economic Area (EEA) must withdraw their holdings before the deadline or, where suitable, have their balances converted into Circle's USDC or another supported asset or currency.
The restrictions cover USDT, PayPal's PYUSD, World Liberty Financial's USD1, DAI, PAX, GUSD, GYEN, BUST, UST, RAI, PAXG, MUSD, USDS and TGBP. Coinbase has already restricted purchases, sales, and conversions involving these assets, leaving withdrawals to supported external wallets as the remaining option for customers seeking to retain them.
The exchange attributed the move to the European Union's Markets in Crypto-Assets Regulation (MiCA), which requires issuers of qualifying stablecoins to obtain regulatory authorization.
Coinbase said the transitional period for stablecoin issuers expired on July 1, 2026, without an extension, preventing it from continuing to support tokens whose issuers lack the required authorization.
Related ReadingThe decision could further strengthen Circle's position in Europe's regulated stablecoin market by directing balances away from rival tokens, including Tether's USDT. However, Coinbase has not disclosed the value of affected customer holdings, making the potential scale of conversions unclear.
The deadline follows an Oct. 8 opinion from the European Securities and Markets Authority (ESMA), which directed authorized crypto firms to stop providing services involving stablecoins that fail to meet MiCA requirements.
The regulator extended its expectations beyond trading to custody, transfers, portfolio management and other crypto services. It instructed national authorities to address remaining exposures within three months, effectively setting Jan. 8, 2027, as the outer deadline while allowing earlier restrictions.