On October 30, Coinbase will automatically convert balances held in fourteen stablecoins that do not comply with MiCA, including USDT, DAI, PYUSD, USD1 and tokenized gold PAXG, into USDC or, where applicable, another asset accepted by the platform. The operation affects Coinbase Luxembourg S.A.’s European clients because none of the issuers involved obtained the required European authorization before the transitional period ended on July 1. Customers wishing to keep their tokens must withdraw them to an external wallet or a platform established outside the European Union before Thursday evening, as networks are often congested near the deadline. In France, converting one stablecoin into another benefits from a tax deferral, but the latent capital gain remains attached to the original token; taxation of crypto conversions into stablecoins is also planned from January 1, 2027. USDC will thus become the default digital dollar for Coinbase’s European customers on Friday, following the restrictions already imposed on USDT by Binance, Kraken and Crypto.com.
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