Coinbase Global Inc. (COIN) shares are experiencing a surge on Friday, driven by the company’s announcement to adjust its service offerings in response to new European regulatory requirements.
The cryptocurrency exchange has outlined plans to delist certain stablecoins for users within the European Economic Area (EEA) that fail to meet the standards set by the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. These changes are expected to be fully implemented by December 2024, marking a significant shift in how stablecoins, digital assets pegged to stable values, will be managed within the region.
MiCA, introduced in 2023, mandates strict compliance from stablecoin issuers, including requirements for transparency, liquidity, and consumer protection. In anticipation of these upcoming regulations, Coinbase is restricting its services for stablecoins that fall short of MiCA’s criteria, demonstrating its proactive approach to regulatory alignment.
Beginning in November, affected EEA customers will have the option to transition to authorized stablecoins such as Circle’s USDC and EURC, which are pegged to the U.S. dollar and the euro, respectively.
Coinbase’s stock movement is also influenced by broader market conditions. Crypto-related stocks faced pressure earlier in the week due to a decline in Bitcoin prices, which dipped amidst escalating geopolitical tensions in the Middle East. Reports suggest Iran could be preparing for a military attack on Israel.
At the time of writing, Coinbase shares were up $4.56% at $170.59, according to Benzinga Pro.
