Coinbase USDC Earn Program Will Stop Catering To EEA Users On December 1st

Starting December 1st, 2024, Coinbase will stop offering rewards to users in the European Economic Area (EEA) for holding USDC on its platform, in response to the upcoming European Union Markets in Crypto-Assets (MiCA) regulations.

New Rules

The Coinbase USDC Earn program will officially end for EEA users on November 30th, with final payments expected to be distributed within the first ten business days of December. This change, first reported by Cryptoslate, is a result of new rules governing electronic money tokens, including stablecoins like USDC.

Currently, the program is available in over 100 jurisdictions, offering different annual percentage yields (APYs) based on where users are located as well as their individual daily USDC holdings. Recently, Coinbase Wallet enabled users to earn 4.7% APY on their USDC holdings, marking a significant expansion of its global rewards program. This new feature, announced in their latest press release, allows users to earn rewards on their USDC assets without the need for lock-up periods, offering flexibility and convenience.

Adapting Is Mandatory

As part of the MiCA regulations, which aim to create a unified regulatory framework for digital assets in the EU, crypto companies must adapt to comply. In October, Coinbase announced it would delist non-compliant stablecoins in MiCA-regulated regions. Other companies have followed suit, as Bitstamp, for example, removed the stablecoin EURT for failing to meet MiCA requirements.

Tether, the issuer of EURT, is also adjusting by discontinuing support for the stablecoin to focus on developing new MiCA-compliant tokens like EURQ and USDQ. The MiCA framework seeks to improve transparency and stability in the crypto market, requiring businesses to ensure their operations meet the new compliance standards. These changes represent a major shift for the cryptocurrency industry in Europe, with companies like Coinbase already taking steps to comply.