Coinbase plans to end support for USDC earn program for EU customers on December 1, 2024
The exchange cites EU’s MiCA rules that go into full implementation on December 30 for the decision
Coinbase has notified its customers that the exchange plans to discontinue the USDC rewards program by December 1.
Coinbase, which announced the delisting of non-compliant stablecoins in the European Economic Area (EEA) earlier in the year, is taking the step to sunset the USDC Rewards program.
The program has been available to the EEA’s 30 countries – including 27 that form the EU. Markets in Crypto-Assets Regulation (MiCA) stablecoin laws rollout is the reason for Coinbase’s decision, the exchange noted in an update that circulated online on November 28.
Marina Markezic shared the Coinbase announcement on X:
MICA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA @coinbase @circle pic.twitter.com/8GCGlpt8Xd
— Marina Markezic (@MarinaMarkezic) November 28, 2024
MiCA rules full implementation
According to details in the notice shared on X, Coinbase’s decision to end the yield program for the USDC stablecoin is part of the exchange’s effort to comply with the European Union’s MiCA rules.
MiCA regulation of stablecoins went into effect in June, but the rules will come into full effect on December 30, 2024.
Various crypto companies and stablecoin issuers have moved to get EU registration and licenses ahead of MiCA full implementation. However, some industry players plan to delist certain stablecoins in the region. Notably, this also sees initiatives to launch EU-compliant fiat-backed coins.
Earlier this week, Tether, the issuer of the world’s largest stablecoin by market USDT, announced its decision to end support for Tether Euro (EURT). This is a Euro-pegged stablecoin that has been delisted by other providers. Tether said it will halt EURT support until there are “more risk-averse framework[s] is in place.”
Tether chief executive officer Paolo Ardoino commented via X:
Tether’s decision to delist EURt has not been taken lightly, but until a more risk-averse regulatory framework in Europe is in place—one that fosters innovation, offers the stability and protection our users deserve and avoids potential banking systemic risks—we have chosen to… https://t.co/WQWAeMwpbD
— Paolo Ardoino 🤖🍐 (@paoloardoino) November 27, 2024
Tether is however investing in Quantoz Payments, a company issuing the MiCA-compliant stablecoins EURQ and USDQ.
