Coinbase plans to end support for the USDC Earning Program for EU customers on December 1, 2024. The exchange cites the EU’s MiCA rules, which will take full effect on December 30, as the reason for this decision.
Coinbase has notified customers that the exchange plans to discontinue its USDC rewards program by December 1st.
Coinbase, which announced the delisting of non-compliant stablecoins in the European Economic Area (EEA) earlier this year, is taking steps to discontinue its USDC rewards program.
The program is available in 30 countries in the EEA, including the 27 countries that make up the EU. Coinbase’s decision was due to developments in the Markets in Cryptocurrency Regulation (MiCA) stablecoin legislation, the exchange noted in an update distributed online on November 28.
Marina Markesić shared Coinbase’s announcement regarding X.
MICA is starting -> Sunset on USDC rewards in EU due to MiCA @coinbase @circle pic.twitter.com/8GCGlpt8Xd
— Marina Markezic (@MarinaMarkezic) November 28, 2024
Full implementation of MiCA rules
Coinbase’s decision to end its USDC stablecoin yield program is part of the exchange’s efforts to comply with the European Union’s MiCA regulations, according to details in a notice shared with X.
The MiCA regulation for stablecoins came into effect in June, and the regulation is scheduled to come into full effect on December 30, 2024.
Various cryptocurrency companies and stablecoin issuers are working to obtain EU registration and licenses ahead of the full implementation of MiCA. However, some industry players are planning to delist certain stablecoins in the region. Notably, this also sees efforts to issue coins backed by EU-compliant fiat currencies.
Earlier this week, Tether, the world’s largest stablecoin issuer on the USDT market, announced its decision to end support for Tether Euro (EURT). It is a euro-pegged stablecoin that has been delisted by other providers. Tether said it would suspend support for EURT until “a more risk-averse framework is in place.”
Tether CEO Paolo Ardoino commented via X:
Tether’s decision to delist EURt was not taken lightly, but until a more risk-averse regulatory framework is in place in Europe, one that fosters innovation and provides users with the stability and protection they deserve. , until we have a framework in place to avoid potential banking system risks, we have chosen to: … https://t.co/WQWAeMwpbD
— Paolo Ardoino🤖🍐 (@paoloardoino) November 27, 2024
However, Tether has invested in Quantoz Payments, a company that issues MiCA-compliant stablecoins EURQ and USDQ.
