Coinbase Terminates USDC Yield Program for Users in the European Economic Area Citing New EU Regulations

The top US-based crypto exchange by trading volume is ending its USDC Rewards program for European users.

According to a screenshot shared by Marina Markezic, Coinbase is letting European Economic Area (EEA) clients know that USDC staking is coming to an end due to Markets in Crypto-Assets (MiCA) regulations.

“MICA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA.”

Said Ripple’s Chief Technology Officer (CTO) David Schwartz on the matter,

“It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer.”

It was reported in October that Coinbase would end support for non-MiCA-compliant stablecoins.

“Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024.”

MiCA provides rules covering the supervision, consumer protection and environmental safeguards of crypto assets. The legislation includes measures that aim to reduce financial crimes including market manipulation, money laundering and terrorist financing.

MiCA also placed stablecoin issuers under the European Banking Authority and is requiring them to hold sufficient liquid reserves. The part of the legislation covering stablecoins took effect in June, while the rest is scheduled to roll out in December.

 

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