Coinbase will convert European customers' USDT and 13 other restricted tokens on Friday, after ESMA told crypto firms to drop stablecoins that fail EU rules

Coinbase will automatically convert what is left of 14 restricted tokens in the accounts of its retail customers in the European Economic Area on Friday, October 30. The list includes Tether's USDT, PayPal's PYUSD, World Liberty's USD1 and Sky's DAI and USDS, according to Coin-Turk and cryptonews.net, both of which cite Coinbase's customer notice.

Balances still held on Friday are converted at the market rate, into USDC where suitable and otherwise into another asset Coinbase supports, the outlets reported. Buying, selling and converting the tokens is already closed, so withdrawing to an external wallet is the only way to keep holding them. Tokens sent to Coinbase after the deadline will not be credited. Coinbase warned that conversions can have tax implications.

The notice follows ESMA's October 8 opinion telling firms authorised under the EU's MiCA rules to stop providing services tied to non-compliant stablecoins. Cointelegraph reported that ESMA set January 8, 2027 as the latest date for firms to address existing exposure, that national regulators can set earlier deadlines, and that ESMA did not name any token. Tether has not obtained the MiCA authorisation, according to cryptonews.net.

The reports did not say what other exchanges operating in Europe plan to do.