Coinbase has revealed that USDC rewards for European users will cease to exist as new stablecoin regulations are implemented in Europe.
New stablecoin regulations are now in effect, more than a year after the European Union implemented the Markets in Crypto-Assets (MiCA) regulations. The new regulatory regime necessitates that crypto companies modify their operations. For the majority of them, this entails the termination of services for European users.
The stablecoin rewards program for European customers was most recently discontinued by Coinbase USDC. This determination is the result of Tether’s announcement that it would terminate its EURT stablecoin.
Several European crypto enterprises are discontinuing their stablecoin services. Coinbase discontinued its USDC rewards program for users in the European Economic Area (EEA) on Friday, November 29.
Coinbase has stated that European users will continue to receive daily yields on USDC balances until November 30. Nevertheless, the yields will cease on December 1. Subsequently, users will receive all yields that had accrued by December 10.
The exchange attributed the termination of its yield program, which is accessible in 100 jurisdictions, to the implementation of new EU regulations. Coinbase asserted that it is imperative to discontinue the USDC rewards program for EEA customers in accordance with MiCA.
European Markets in Crypto-Assets (MiCA) has a particular emphasis on stablecoins, which it refers to as “e-money tokens.” It establishes stringent regulations for investor protection, transparency, and reserves in order to mitigate the systemic risks associated with these assets.
In general, the regulation had a significant impact on the crypto industry, as numerous companies delisted their stablecoins. For example, Binance implemented restrictions on the use of unregulated stablecoins within the European Economic Area. Moreover, on Wednesday, November 27, Tether delisted its EURT stablecoin, which was intended for European users.
Nevertheless, not all organizations responded in the same manner. Circle, the issuer of USDC, has implemented compliance with EU regulations. The corporation declared in September that it would submit a petition to the European Union to have USDC and EURC recognized as official currencies.
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