Coinbase will cease rewarding USDC holders in the European Economic Area (EEA) due to upcoming MiCA (Markets in Crypto-Assets) regulations. EEA holders can earn rewards until November 30th, with payments distributed in the first ten business days of December.
Coinbase Earn Program Features
The Coinbase Earn program allowed users in over 100 jurisdictions to generate yields based on their USDC holdings. The annual percentage yield (APY) varied by location. According to a letter sent by Coinbase on November 28th, upcoming E-money regulations for stablecoins led to changes in the program.
Impact of MiCA Regulations
MiCA introduces a unified regulatory environment for digital assets in the Eurozone, bringing significant changes to the crypto market. The regulations demand stricter rules for stablecoins, forcing exchanges to delist or remove non-compliant tokens. Coinbase stated that EEA users had until November 30th, with payouts scheduled for early December.
Market Participants' Reactions
Tether CEO Paolo Ardoino stated that MiCA regulations forced exchanges to adapt or exit the EEA market. Tether is investing in the development of MiCA-compliant tokens and reallocating resources. Similarly, Bitstamp delisted non-compliant EMT tokens, while Binance is implementing phased measures to comply with MiCA requirements.
The introduction of MiCA regulations aims to increase stability and transparency in the European crypto market. Platforms like Coinbase are making adjustments to comply with new requirements.
