Coinbase will suspend USDC rewards in the EEA on December 1st

Coinbase will stop offering rewards to holders of the USD Coin (USDC) stablecoin located in the European Economic Area (EAA) on November 1st.

In a note to clients, the exchange explained that the move had been triggered by “new requirements for e-money tokens” that are expected to come into effect with the upcoming adoption of the Markets in Crypto Assets regulations ( MiCA) in the region.

USDC rewards program set for sunset

The USDC Rewards Program allows Coinbase users in over 100 jurisdictions to earn interest on their stablecoin holdings. Performance, the rate of which varies from country to country, is paid monthly and automatically deposited into users’ accounts.

According to the memo, eligible users living in the EAA will continue to earn interest on their USDC through November 30, with the program ending the following day. The exchange also confirmed that customers will still be able to receive their payments from the scheme within the first ten working days of December. That gives them until December 13 to claim their funds.

MiCA Compliant Crypto Companies

MiCA is a global regulatory framework established by the European Union (EU) to govern the crypto sector. It creates a uniform set of rules for the issuance, trading and provision of crypto-related services across the 27 EU members.

It has caused many digital asset companies operating in Europe to readjust their offerings to comply. In October, Coinbase announced that it would remove all stablecoins that do not comply with its EU platform. For its part, Bitstamp has delisted Euro Tether (EURt), the Tether stablecoin pegged to the euro, which it said did not meet MiCA requirements.

Tether is developing MiCA-compatible products after acquiring a stake in Netherlands-based fintech company Quantoz. It also stated that it would stop supporting EURt, with holders until November 27, 2025 to redeem their tokens.

While Coinbase’s decree covers EAA customers, three countries, Norway, Iceland and Lichtenstein, are not members of the EU, where MiCA will be active. However, to ensure their participation in the EU’s internal market, they often adopt many of the measures that the union leads. As such, while not automatically bound by MiCA, analysts believe they may choose to adopt similar regulations.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!