Coinbase will automatically convert the remaining balances of 14 restricted crypto assets held by retail customers in the European Economic Area (EEA) — the EU member states plus Iceland, Liechtenstein and Norway — on October 30, 2026. The exchange introduced the measure to comply with the European Union's Markets in Crypto-Assets Regulation (MiCA), the bloc's unified framework for crypto-asset issuance and services. Customers who want to keep the affected tokens must withdraw them to external wallets before the deadline.

The assets slated for conversion include stablecoins such as USDT, DAI and PYUSD. Coinbase also cautioned that late deposits may be difficult to recover and that conversions could trigger tax obligations depending on the customer's jurisdiction.

USDT, DAI and 12 Other Assets Face Conversion

According to Coinbase's announcement, the affected assets are USDT, PAX, PYUSD, GUSD, GYEN, DAI, BUST, UST, RAI, PAXG, MUSD, USD1, USDS and TGBP. The list includes stablecoins associated with Tether, PayPal and World Liberty Financial.

Buying, selling and converting the affected assets have already been restricted on the platform. Withdrawing them to an external wallet is therefore the only option remaining for customers who wish to continue holding them.

The exchange will convert remaining balances at prevailing market rates on October 30, using USDC where suitable, or another supported crypto asset or currency otherwise. The conversion applies once, to balances held on that date.

MiCA Rules Drive the Restrictions

Coinbase said MiCA affects services involving stablecoins that fail to meet the regulation's requirements, which include issuer authorization and reserve obligations for stablecoins offered across the bloc. The transitional period for stablecoin issuers ended on July 1, 2026, without an extension, leaving no grace period for tokens that remain short of compliance.

Under the rules, affected assets qualify either as e-money tokens, which maintain their value by reference to a single official currency, or as asset-referenced tokens, which reference several currencies, commodities or other assets. Coinbase Luxembourg S.A. provides crypto-asset services to EEA customers and holds authorization under MiCA from Luxembourg's financial regulator, the CSSF.

The company also reviews the assets it supports as regulatory requirements change. If an affected stablecoin becomes MiCA-compliant, Coinbase may reassess whether to support it again, although renewed support would not reverse a conversion that has already been completed. For holders, that leaves the days before October 30 as the decisive window for deciding whether to retain these tokens in external wallets or accept conversion into USDC or another supported asset.

Late Deposits Risk Loss of Access and Recovery

Coinbase cautioned customers against sending affected assets after October 30. Late deposits will not appear in account balances, will not support trading or transfers, and will not qualify for automatic conversion.

Where technically possible, customers may attempt recovery through Coinbase's unsupported crypto recovery process. Recovery depends on the asset and network involved, and success is not guaranteed.

Coinbase additionally noted that converting one crypto asset into another may constitute a taxable event in some jurisdictions. Customers must determine their own tax obligations independently and are advised to consult a tax adviser where necessary.