On the arrival of Markets in Crypto-Assets (MiCA) regulations next month, Coinbase has announced the suspension of its USDC stablecoin rewards program in the European Economic Area (EEA) from December 1.
Very grateful to the EU for protecting me against earning a yield on my USDC holdings on Coinbase pic.twitter.com/Us8ml0PQFY
— Paul Berg (@PaulRBerg) November 28, 2024
The exchange has informed users via email on November 28, 2024. The decision was taken to follow new compliance requirements for stablecoins, classified as e-money tokens under MiCA.
Coinbase’s Efforts To Comply MiCA Regulations
USDC holder in the EEA will continue earning yields on their balances until November 30, with accrued rewards distributed within the first 10 business days of December. Coinbase’s USDC rewards program, which offers daily yields with varying annual percentage yields (APY) based on locations, is available in over 100 jurisdictions globally.
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MiCA aims to create a standard regulatory framework for crypto assets in the EU. These new regulations have forced many crypto businesses to reassess their operations.
Earlier in October, Coinbase announced plans to remove all non-compliant stablecoins from its platform in MiCA-regulated regions. Similarly, Bitstamp delisted Tether’s euro-pegged stablecoin EURt, while Binance restricted services involving unregulated stablecoins earlier this year.
On November 27, Tether also confirmed that it would support discontinuation for EURt. CEO Paolo Ardoino expressed concern about potential systemic risks under MiCA.
As the deadline of December 30 for MiCA nears, the European crypto industry continues to figure out possible shifts and impacts on their operations.
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