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 Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term 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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term requirements. Additionally, e-money token issuers are prohibited from offering interest, ensuring stability without being classified as financial instruments.

MiCA Forces Coinbase Stablecoin Changes

Coinbase will remove certain stablecoins from its platform in the European Economic Area (EEA) by the end of the year, citing upcoming regulatory changes, as reported by Finance Magnates. The decision is in response to the European Union's Markets in Crypto-Assets (MiCA) regulation, which takes full effect in December 2024.

🚨BREAKING NEWS:

Coinbase is set to remove non-compliant stablecoins from its platform in the EU this December!

On the other hand, Ripple's stablecoin, 'RLUSD', is fully compliant with MiCA regulations and is expected to launch this year!

Get ready, because 'RLUSD' is poised… pic.twitter.com/OLcSUflRow

— Brett (@Brett_Crypto_X) October 4, 2024

MiCA introduces new requirements for stablecoin issuers, including transparency, liquidity, and consumer protection standards.

Coinbase has stated that affected EEA customers will have the option to switch to stablecoins issued by authorized firms, such as Circle’s USDC and EURC, which are pegged to the US dollar and euro, respectively. The use of stablecoins has grown notably, with companies like PayPal integrating them into their services.