Coinbase will convert 14 restricted tokens held by European customers on Oct. 30, including USDT, PYUSD and USD1. Users must withdraw before the deadline, and deposits sent afterward may not be recoverable.
Coinbase will automatically convert 14 restricted crypto tokens held by European customers on Oct. 30, including Tether's USDT. Affected retail users in the European Economic Area must withdraw their holdings before then or, where suitable, have balances converted into Circle's USDC or another supported asset or currency.
Which tokens are restricted
The list covers 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 them, so withdrawing to a supported external wallet is the remaining option for customers who want to keep them.
Coinbase blames the EU's MiCA rules, which require issuers of qualifying stablecoins to obtain regulatory authorization. Coinbase said the transitional period for issuers expired on July 1, 2026 without an extension.
Late deposits may be lost
The deadline follows an Oct. 8 opinion from ESMA, which directed authorized crypto firms to stop providing services involving stablecoins that fail to meet MiCA requirements. ESMA told national authorities to address remaining exposures within three months, effectively setting Jan. 8, 2027 as the outer deadline.
Coinbase's cutoff therefore arrives well ahead of that limit. The exchange will not credit accounts for affected assets sent after the deadline, and those assets cannot be traded or transferred and are excluded from the automatic conversion.
Recovery may be possible through Coinbase's unsupported-asset service, depending on the token and blockchain network, but the company offers no guarantee. Its published terms charge 5% on recovered assets exceeding $100, plus network fees.
Conversions carry market and tax effects
Conversions will occur at prevailing market rates, which could affect customers holding assets valued in currencies other than the US dollar. Coinbase also warned that swapping one crypto asset for another could trigger tax obligations in certain jurisdictions, even when the conversion is automatic.
Issuers that later obtain approval could regain access to Coinbase's European customers. However, the exchange said restored support will not reverse conversions completed under the Oct. 30 deadline.
Source: CryptoSlate
Trading involves risk.
Risk Disclaimer
