The post MiCA forces Coinbase to end the USDC earn program in Europe appeared on BitcoinEthereumNews.com.

Coinbase will stop rewarding USDC holders in the European Economic Area (EEA) starting December 1st due to an upcoming MiCA (Markets in Crypto-Assets) regulation. EEA USDC holders will have until November 30th to earn their final rewards in the program, and their dues will be paid during the first ten business days of December.  The Coinbase Earn program, which is available to users in over 100 jurisdictions, generates yields based on the users’ USDC holdings in the exchange. The APY (annual percentage yield) varies depending on location. According to an email sent by the Coinbase team to its users on November 28th, MiCA was introducing new regulations for E-money tokens (or stablecoins). Coinbase adjusts to new MiCA rules and discontinues USDC rewards in Europe Europe “protecting” its citizens by ensuring they can’t earn yield on their stablecoins via @coinbase 🤡 pic.twitter.com/ExTiNOjB3j — 0xLouisT (@0xLouisT) November 28, 2024 Coinbase will be ‘sunsetting’ the USDC earn program for EEA customers from the 1st of December due to compliance with upcoming MiCA regulations labeling stablecoins as E-money tokens. The new MiCA regulations introduce stricter rules for stablecoins, forcing exchanges to delist or remove non-compliant tokens. Coinbase confirmed that EEA users had until the 30th of November in the USDC earn program, and their final payments would be distributed within the first ten days of December.  MiCA’s establishment of a single regulatory environment for digital assets in the Eurozone comes with huge changes in the crypto market. Coinbase’s announcement in October revealed that it would remove all non-compliant stablecoins in MiCA-regulated regions in line with the agency’s requirements. Paul Berg, the co-founder and CEO of Sablier, sarcastically thanked the EU for ‘protecting’ him against earning a yield on his USDC holdings in Coinbase. “I’m very grateful,” he taunted. The MiCA framework sought to increase…

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Filed under: News - @ November 29, 2024 9:25 am