Coinbase Discontinues USDC Rewards Program in the EU Due to MiCA

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

Coinbase Exchange to Discontinue USDC Rewards Program in EUCoinbase, the leading United States-based cryptocurrency exchange, has announced plans to discontinue its USDC Rewards program in the European Economic Area (EEA) by Dec. 1.

The move comes as part of Coinbase’s efforts to comply with the European Union’s Markets in Crypto Assets (MiCA) rules, which will fully come into effect on Dec. 30, 2024.

Coinbase announced the delisting of non-compliant stablecoins in the EEA earlier this year. Now, the exchange 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. The MiCA stablecoin laws’ rollout is the reason for Coinbase's decision.

The announcement was shared on X by Marina Markezic, product lead at Xclaim: 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

The announcement states that the decision has been made to fully comply with the upcoming Miبازارهای رمزارز در دارایی‌ها (MICA) regulations, which will come into full effect on December 30, 2024.

“As part of our preparations for the Markets in Crypto Assets (MiCA) regulatory framework coming into full effect in the EU on December 30, we will be discontinuing the USDC Rewards program in the European Economic Area (EEA) on December 1,” the Coinbase announcement reads.

“We will continue to evaluate our products and services to ensure we are fully compliant with the upcoming MiCA regulations and providing the best possible experience for our valued customers in the EU.”

MiCA rules full implementation

Further details in the notice shared on X show that Coinbase’s decision to end the yield program for the USDC stablecoin is part of the exchange’s effort to comply with the Markets in Crypto Assets rules.

MiCA regulation of stablecoins went into effect in June, but the rules will come into full effect on Dec. 30, 2024.

Various crypto companies and stablecoin issuers have moved to get EU registration and licenses ahead of the MiCA full implementation. However, some industry players also plan to delist certain stablecoins in the region.

In related news, Tether, the issuer of the world’s largest stablecoin by market capitalization USDT, announced its decision to end support for Tether Euro (EURT) earlier this week.

The Euro-pegged stablecoin has also been delisted by other providers, while Tether said it will halt support for EURT until when there “a more risk-averse framework is in place.”

“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 ...” the Tether chief executive officer Paolo Ardoino commented via X.

Tether is however investing in Quantoz Payments, a company issuing the MiCA-compliant stablecoins EURQ and USDQ.