- Coinbase will stop USDC rewards for EEA users on December 1 due to new regulatory requirements under MiCA.
- Coinbase plans to delist non-compliant stablecoins in Europe, focusing on MiCA-compliant USDC and EURC options.
Coinbase has announced that they would stop USDC rewards to users in the European Economic Area (EEA) effective December 1, 2024. This choice results from the exchange changing its offerings to fit the Markets in Crypto-Assets (MiCA) rules of the European Union.
Stablecoin issuers are subject to rigorous standards set by these rules, which include keeping enough liquidity, guaranteeing openness, and strengthening consumer rights.
Coinbase is expected to end USDC rewards for EEA users on December 1 due to #Mica regulations. pic.twitter.com/6cb6wB7WmP
— Anup Dhungana (@CryptoAnup) November 29, 2024
Coinbase Aligns with MiCA, Delisting Non-Compliant Stablecoins
Officially starting in June 2023, MiCA requires stablecoin issuers to obtain an electronic money institution (EMI) license in at least one EU member state.
Despite the lack of strict enforcement of MiCA until December 30, 2024, Coinbase has decided to aggressively modify its products prior to this deadline. By the end of this year, the exchange also intends to delist stablecoins failing MiCA’s criteria.
With the last payments scheduled for early December, qualified consumers can still receive daily USDC rewards based on their account balances until November 30, 2024.
Coinbase, the company that issues USD Coin (USDC) and Euro Coin (EURC), has assured consumers that it will provide options for converting their holdings into stablecoins that comply with MiCA regulations. Some crypto aficionados, meanwhile, are worried about this development’s possible effects on EEA innovation and user advantages.
The forthcoming developments mirror the major impact of MiCA rules on the crypto sector, especially with regard to European exchanges and stablecoin providers. The choice of Coinbase to phase out rewards emphasizes the increasing requirement of companies to negotiate the complexity of legal systems while matching user expectations.
As businesses strive to align their operations with these comprehensive criteria, the sector is likely to witness further changes as the deadline for complete MiCA implementation approaches.
Beside that, CNF previously reported that Coinbase will not support Celo migrate to Ethereum Layer 2. Users have till January 13, 2025, to retrieve their money. The Celo community sees this as a major blow to Ethereum’s Layer 2 scaling initiatives and more general acceptance of decentralized finance.
