Crypto exchange Coinbase plans to remove any unauthorized stablecoins in the European Union by December 30 to comply with the EU's Markets in Crypto Assets (MiCA) rules.

Coinbase stated, "Given our commitment to compliance, we intend to restrict services to EEA [European Economic Area] users regarding stablecoins that do not meet MiCA requirements by December 30, 2024."

The European Union requires stablecoin issuers to possess an e-money license from a member state to operate within the bloc of 27 nations. Notably, Circle became the first company to secure such a license, while Tether, a leading issuer, lacks the necessary authorization in the EU.

Tether acknowledged the complications MiCA imposes on stablecoin operations, stating, "We commend EU regulators for their structured framework, although some aspects may introduce new complexities and risks."

To address these challenges, Tether is developing a technology-based solution tailored for the European market, which will be revealed later.

Coinbase will provide further updates in November, including options for users to transition to properly authorized stablecoins such as Circle's USDC and EURC.

Bloomberg was the first to report this story.