Coinbase Ends USDC Rewards Program in the EU Due to MiCA Regulations

The top US-based crypto exchange by trading volume is ending its USDC Rewards program for European users.

Major US crypto exchange by trading volume is removing its USDC Rewards program for European users.

According to a screenshot shared by Marina Markezic, Coinbase is informing European Economic Area (EEA) customers that the Markets in Crypto-Assets (MICA) regulation will put an end to USDC staking.

“MICA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA.”

Ripple's Chief Technology Officer (CTO) David Schwartz had this to say about the situation:

“It's funny how often regulations prevent companies from doing things that are unarguably pro-consumer.”

Coinbase announced in October that it would stop supporting stablecoins that didn't follow MiCA.

“In light of our dedication to compliance, we intend to cease offering services to EEA users in relation to stablecoins that do not meet the MICA criteria by December 30, 2024.”

MICA sets out rules for the supervision, consumer protection and environmental safeguards of crypto assets. The legislation includes measures to combat financial crimes such as market manipulation, money laundering and terrorist financing.

Stablecoin issuers were also brought under the supervision of the European Banking Authority by MICA, which mandates that they maintain sufficient liquid reserves. The portion of the legislation pertaining to stablecoins went into effect in June, while the remaining provisions are anticipated to take effect in December.