Coinbase ends USD rewards in EU amid MiCA compliance
Coinbase plans to end support for EU customers of its USDC acquisition program on December 1, 2024. The exchange cites the EU MCA rules, which take full effect on December 30, for the decision.
Coinbase has informed its customers that the exchange plans to discontinue USDC rewards by December 1st.
Coinbase, which announced at the beginning of the year that it was canceling stablecoins that do not comply with the European Economic Area (EEA), is taking steps to sunset the USDC reward program.
The program is designed for 30 EEA countries – including the 27 that make up the European Union. Markets in the Crypto-Assets Regulation (MiCA) are the reason for Coinbase's decision to release stablecoin rules, the exchange explained in an update published online on November 28.
Marina Markzic shared Coinbase's announcement on X:
MICA Launching -> Sunset USDC Rewards at MiCA @coinbase @circle pic.twitter.com/8GCGlpt8Xd
— Marina Markezic (@MarinaMarkezic) November 28, 2024
The MCA provides full implementation
As detailed in an announcement shared on X, Coinbase's decision to end its USDC stablecoin production program is part of the exchange's efforts to comply with EU MCA rules.
MiCA's regulation of stablecoins went into effect in June, but the rules will be fully implemented on December 30, 2024.
Before MiCA is fully implemented, various crypto companies and stablecoin issuers have moved to obtain EU registration and authorization. However, some industry players are planning to delist certain stablecoins in the region. In particular, this concerns initiatives to launch EU-compliant fiat-backed coins.
Earlier this week, Tether, the world's largest stablecoin issuer by market USDT, announced its decision to end support for Tether Euro (EURT). This is a Euro-based stablecoin that has been canceled by other providers. Teser said it will end support for URT “framework that prevents additional risk[s] It's in place.”
Tether CEO Paolo Arduino commented via X.
Tether's decision to cancel UART was not taken lightly, but until a more de-risking regulatory framework is in place in Europe – one that encourages innovation, provides the stability and protection our users deserve, and avoids banking systemic risks, we chose to…
— Paolo Ardoino 🤖🍐 (@paoloardoino) November 27, 2024
However, Tether is investing in Cointoss payments, which issue MCA-compliant stablecoins EURQ and USDQ.
