Coinbase Ends USDC Rewards in Europe Due to New Crypto Regulations
Coinbase has made waves in Europe after announcing that it would no longer offer its rewards program for USD Coin (USDC), a decision driven by new crypto regulations in the region.
European customers have voiced frustration, particularly over the implications of the European Union’s latest crypto rules.
Starting December 1, users in the European Economic Area will no longer be able to earn rewards on USDC holdings. This change is a direct result of the EU’s Markets in Crypto-Assets (MiCA) regulations, which specifically prohibit interest-bearing offerings on stablecoins. Coinbase informed its users via email, which many shared on social media, stating that the rewards program will officially end, though users have until November 30 to accrue any remaining rewards.
Industry professionals have responded with sarcastic remarks, highlighting their displeasure with the MiCA laws. Paul Berg, co-founder of the crypto infrastructure firm Sablier, quipped about being “protected” from the rewards program, while Mikko Ohtamaa from Trading Strategy also chimed in with a mocking take on the changes.
READ MORE: Tether to Discontinue Euro-Pegged Stablecoin, Focus Shifts to MiCA-Compliant Projects
The new regulations, which took effect in June 2023, have set stringent rules for crypto firms operating within the EU, including a full compliance deadline of December 2024. One of the most contentious aspects of MiCA is its prohibition on offering interest or rewards on stablecoins, which many in the industry argue limits consumer benefits.
Meanwhile, other firms are navigating the evolving regulatory landscape. Tether, the issuer of the US dollar-backed stablecoin, has also adjusted its strategy, pulling support for its euro-pegged token due to the changing rules. In contrast, a group of former Binance executives has opted to push forward with their own euro-pegged stablecoin, EURØP, which is set to launch soon.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
