Coinbase Cuts Ties with USDC Rewards in EEA Over MiCA Rules

Coinbase has announced that it will end USDC rewards for holders in the European Economic Area (EEA) starting December 1. This decision is in response to the new Markets in Crypto-Assets (MiCA) regulation, the exchange stated in a November 28 email to customers.Coinbase USDC Rewards EndQualified users will continue earning USDC rewards until Nov. 30. The final rewards will be distributed within the first 10 business days of December.Coinbase’s rewards program allowed users to earn daily yields for holding USDC on the platform. The program was available in over 100 jurisdictions, with the annual percentage yield varying by region due to local economic and regulatory factors.Coinbase Delists Non-Compliant StablecoinsMiCA, effective from June 2023, brings new compliance requirements for e-money tokens like USDC. Starting June 30, 2024, issuers must be licensed as credit or electronic money institutions. These entities must meet strict standards, including reserve management and liquidity requirements. Additionally, e-money token issuers are prohibited from offering interest, ensuring stability without being classified as financial instruments.Coinbase also plans to delist stablecoins that do not meet MiCA requirements. Other companies, including Uphold, Bitstamp, and Tether, have announced their intention to comply with the new regulations. This article was written by Tareq Sikder at www.financemagnates.com.

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Nov 29, 2024 - 15:30
Coinbase Cuts Ties with USDC Rewards in EEA Over MiCA Rules

Coinbase has announced that it will end USDC rewards for holders in the European Economic Area (EEA) starting December 1. This decision is in response to the new Markets in Crypto-Assets (MiCA) regulation, the exchange stated in a November 28 email to customers.

Coinbase USDC Rewards End

Qualified users will continue earning USDC rewards until Nov. 30. The final rewards will be distributed within the first 10 business days of December.

Coinbase’s rewards program allowed users to earn daily yields for holding USDC on the platform. The program was available in over 100 jurisdictions, with the annual percentage yield varying by region due to local economic and regulatory factors.

Coinbase Delists Non-Compliant Stablecoins

MiCA, effective from June 2023, brings new compliance requirements for e-money tokens like USDC. Starting June 30, 2024, issuers must be licensed as credit or electronic money institutions.

These entities must meet strict standards, including reserve management and liquidity requirements. Additionally, e-money token issuers are prohibited from offering interest, ensuring stability without being classified as financial instruments.

Coinbase also plans to delist stablecoins that do not meet MiCA requirements. Other companies, including Uphold, Bitstamp, and Tether, have announced their intention to comply with the new regulations. This article was written by Tareq Sikder at www.financemagnates.com.