Leading US-based exchange Coinbase has discontinued offering yield rewards to USDC holders in Europe, citing MiCA compliance efforts.
As Markets in Crypto Assets (MiCA) regulations in European Economic Areas (EEA) gain momentum, major exchanges are cutting down services to adapt to the new regulatory climate. America’s largest exchange Coinbase becomes the latest to limit services to European users.
In an email to clients on November 28, Coinbase indicated it is terminating its reward program for USDC holders in the European axis. Per the notification, this development would take effect from December 1.
Coinbase Makes Efforts to Comply with MiCA Regulations
The exchange mentioned that the discontinuation came following the classification change of stablecoins in the new MiCA regulatory regime. The latest guideline for stablecoins, categorized as e-money tokens, has forced Coinbase to sunset its USDC yield program for users in the European market.
Notably, the change would affect over 100 European jurisdictions that earn from the USDC yield program. Coinbase offers yearly returns, up to 4.7% annual percentage yield (APY), for USDC holders.
Meanwhile, USDC holders in the EEA would continue to see daily yields on their stablecoin stash until November 30. After expiration, Coinbase would pay the accrued rewards in the first ten business days of December.
Crypto Firms Reaccess Offerings Following MiCA Reality
As the new regime unfolds, crypto firms are reaccessing their offerings to ensure compliance. Coinbase becomes the latest to do so after other major entities have taken caution.
For instance, Tether announced yesterday it has discontinued support for EURt, its euro-pegged stablecoin. The leading stablecoin issuer cited MiCA and insisted it would focus on other products until European regulations became friendlier.
Meanwhile, this move from Tether came after it acquired Netherlands-based fintech Quantoz Payment. The stablecoin issuer announced it would process digital euro-related transactions through the fintech firm.
Nonetheless, Circle announced it had launched a MiCA-compliant EURO stablecoin. The issuer debuted the EURC, becoming one of the first to launch a euro-pegged stablecoin compliant in the new regime.
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