Coinbase to End USDC Rewards in Europe Amid Regulatory Changes
The post Coinbase to End USDC Rewards in Europe Amid Regulatory Changes appeared first on Coinpedia Fintech News
Coinbase has announced that it will stop offering USDC rewards to users in the European Economic Area (EEA) starting December 1. This change is linked to the upcoming Markets in Crypto-Assets (MiCA) regulations, which aim to create a unified legal framework for digital assets across Europe.
USDC Rewards Program
The USDC rewards program by Coinbase allows users to earn daily interest based on the amount of USDC held in their accounts. This feature, available in over 100 countries, has been popular among users for providing an easy way to grow their holdings without active trading.
Why Is Coinbase Ending Rewards in the EEA?
The decision to stop USDC rewards in the EEA comes as Coinbase prepares to comply with MiCA regulations. These new rules, designed to standardize crypto operations across Europe, will bring stricter requirements for crypto platforms to ensure market stability, protect consumers, and increase transparency.
Coinbase’s decision highlights the adjustments crypto platforms may need to make as MiCA becomes the standard for the European market.
However, Coinbase has reassured EEA users that it remains dedicated to following local regulations and will explore new ways to enhance the user experience. While removing rewards may disappoint some users, the move ensures that Coinbase meets European standards.
Other Exchanges Following the Same
In early October, Coinbase announced plans to remove all stablecoins that fail to comply with MiCA regulations in regions where the framework is enforced.
Similarly, other major exchanges have also taken steps to align with MiCA. Bitstamp recently delisted Tether’s euro-pegged stablecoin, EURt, citing its inability to meet the new regulatory requirements. Likewise, Binance made adjustments in June, restricting services involving unregulated stablecoins to ensure compliance with the evolving rules.
What Next For Users Outside the EEA?
The USDC rewards program will remain unchanged for users outside the EEA. Coinbase continues to offer rewards to customers in over 100 jurisdictions, demonstrating its commitment to providing value despite regulatory challenges.
