Coinbase ends USDC rewards in EU amid MiCA compliance

• 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 Dec. 30 for the decision.

Coinbase has notified its customers that the exchange plans to discontinue the USDC rewards program by Dec. 1.

Coinbase, which announced the delisting of non-compliant stablecoins in the European Economic Area earlier in the year, is taking this step to sunset the USDC Rewards program.

The program has been available to the EEA’s 30 countries – which includes 27 that form the EU. MiCA stablecoin laws’ rollout is the reason for Coinbase’s decision, the exchange noted in the update that circulated online on Nov. 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 Markets in Crypto Assets 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 also been delisted by other providers. Tether said it will halt EURT support until when there “a more risk-averse framework 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.