Coinbase to Convert Balances of 14 European Crypto Assets on October 30 Under MiCA
Key Facts
Coinbase said customers’ remaining balances of assets covered by MiCA restrictions will be subject to a one-time conversion on October 30, 2026, in a measure affecting retail customers in the European Economic Area. The platform said the conversion will take place at the market price at the time of execution, and may be into USDC if appropriate, or another crypto asset or currency supported by Coinbase. The measure follows restrictions on buying, selling and transferring these assets on the platform, while withdrawal to an external wallet remains the available option for those wishing to retain them, where withdrawals are supported. The notice covers 14 assets, including PAXG, according to Coinbase’s list of affected assets. The company links the restrictions to MiCA requirements, which regulate crypto assets in the European Union.
Coinbase said the restrictions apply to retail customers served by Coinbase Luxembourg S.A. for crypto-asset services. The company says the entity is licensed under MiCA by Luxembourg’s financial regulator, the CSSF. Under the current arrangements, customers cannot buy, sell or transfer the covered assets on the platform, while withdrawal to an external wallet remains possible if Coinbase supports it for that asset. This step differs from a final delisting of the assets: the notice sets out how remaining balances will be handled and the restrictions on services available to customers. The practical deadline for customers holding balances therefore concerns what will happen to assets remaining in their accounts when the conversion is carried out on October 30, 2026.
If Coinbase carries out the conversion, the balance will be calculated at the market price at the moment of execution, rather than at a fixed price set by the company in advance. The platform says USDC will be the conversion destination when appropriate, but reserves the option of converting into another crypto asset or currency it supports if USDC is unsuitable. This means USDC is not the sole guaranteed destination for every balance, and the type of asset received depends on what Coinbase considers appropriate and which assets and currencies it supports. The company also warned that converting one crypto asset into another may constitute a taxable event in some jurisdictions. Coinbase makes customers responsible for determining their tax obligations related to the conversion, making the transaction’s tax impact dependent on the customer’s jurisdiction and circumstances.
Coinbase places the measure in the context of the end of the transitional period for stablecoin issuers on July 1, 2026, a period it says was not extended. According to the company, it cannot continue supporting a stablecoin whose issuer has not obtained a MiCA license. MiCA provisions for asset-referenced tokens and e-money tokens have applied since June 30, 2024, while the rest of the regulation began applying on December 30, 2024. At the European supervisory level, the European Securities and Markets Authority said crypto-asset service providers should not provide services relating to ARTs or EMTs that do not comply with applicable MiCA requirements. The authority’s opinion places trading and conversion services within the scope of supervisory obligations, while Coinbase attributes its restrictions to compliance requirements and the transitional framework for stablecoin issuers.
After the conversion date, Coinbase warns that covered assets sent to its accounts after October 30, 2026, will not be added to the customer’s balance or appear in their account, and will not be included in the automatic conversion. The company says recovery of these assets through its unsupported-asset process is not guaranteed. This means a deposit after the deadline will not restore the asset to the regular balance or guarantee its settlement through the announced process. If an asset later becomes MiCA-compliant, Coinbase says it will reassess future support for it, without changing a conversion already carried out. The October 30 deadline thus marks the dividing line between balances already held, which will be handled under the conversion process, and assets that may be sent afterward, with the possibility of future support being reviewed if compliance is achieved.