Coinbase is ending its USDC Rewards program for users in the European Economic Area (EEA). This change comes as a result of new regulations under the Markets in Crypto-Assets (MiCA) framework.
A screenshot shared by Marina Markezic shows that EEA clients are being informed about the end of USDC staking due to these regulatory updates.
David Schwartz, the CTO of Ripple, commented on the situation. He said, “MiCA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA.” He added, “It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer.”
Back in October, reports indicated that Coinbase would stop supporting stablecoins that don’t comply with MiCA. They emphasized their commitment to compliance. They plan to limit services for EEA users regarding non-MiCA-compliant stablecoins by December 30, 2024.
MiCA sets rules for supervision, consumer protection, and environmental safeguards for crypto assets. It aims to reduce financial crimes like market manipulation, money laundering, and terrorist financing.
Additionally, MiCA places stablecoin issuers under the European Banking Authority. This means they must hold enough liquid reserves. The rules for stablecoins took effect in June, while the rest of the legislation will roll out in December.