Coinbase to halt USDC earn program on MiCA compliant regions

Coinbase volition halt rewards for USD Coin (USDC) holders located successful the European Economic Area (EEA) connected Dec. 1 owed to the upcoming Markets successful Crypto-Assets (MiCA) regulation, according to an email sent to customers connected Nov. 28.

The speech said the determination is simply a effect of the caller requirements for e-money tokens, which is however stablecoins are labeled nether MiCA. Users volition proceed accruing output with their USDC balances until Nov. 30, with the worth paid wrong the archetypal 10 concern days of December.

Coinbase’s USDC rewards programme is disposable successful implicit 100 jurisdictions. It generates regular yields implicit users’ USDC balances successful the exchange, and the yearly percent output (APY) varies depending connected the user’s location.

Run for compliance

The MiCA rules for stablecoins person prompted aggregate crypto firms successful the EEA to marque moves to accommodate to the evolving landscape. Coinbase revealed successful aboriginal October that it plans to remove each non-compliant stablecoins from its level successful jurisdictions wherever MiCA is effective.

Bitstamp delisted Tether’s euro-pegged stablecoin Tether EURt (EURt) for not gathering MiCA requirements, portion Binance decided to limit services related to unregulated stablecoins successful June.

Stablecoin issuer Tether has besides made moves to guarantee regulatory compliance. On Nov. 18, the crypto company invested successful the Dutch fintech Quantoz to boost the instauration of MiCA-compliant stablecoins EURQ and USDQ.

Additionally, Tether announced connected Nov. 27 that it would halt enactment of its euro-pegged stablecoin EURt. Holders tin redeem the tokens until Nov. 27, 2025.

Tether CEO Paolo Ardoino said the institution volition absorption connected different initiatives until a “more risk-averse regulatory framework” exists successful Europe. He added that MiCA represents imaginable banking systemic risks.

The station Coinbase to halt USDC gain programme connected MiCA compliant regions appeared archetypal connected CryptoSlate.