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29/11/24
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Coinbase Halts USDC Rewards in EU Amid New Crypto Regulations
Coinbase customers in Europe are expressing dissatisfaction with the region’s evolving cryptocurrency regulations after the exchange announced the discontinuation of its yield program for the USDC stablecoin. In a communication sent on November 28, Coinbase informed users that, in compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations regarding stablecoins, it would end the USDC rewards program effective December 1.
This decision impacts users located within the European Economic Area (EEA), which includes all 27 EU member states along with Iceland, Norway, and Liechtenstein. According to the company’s email, affected users can continue to earn rewards for their USDC holdings until November 30.
In response to this development, some members of the crypto community shared sarcastic remarks on social media. The CEO of Sablier characterized the EU’s protective measures in a mocking tone, while another industry participant expressed irony over the notion of being “protected” by the regulations.
With the MiCA regulations coming into effect in June 2023, cryptocurrency firms operating in the EU, including Coinbase and USD Coin issuer Circle, are required to align fully with these rules by December 30. The stringent regulations prohibit the offering of interest on stablecoins, as stablecoins are categorized as “e-money tokens,” raising concerns about their potential impact on consumer choices.
Amid these changes, Tether has announced its decision to discontinue support for its euro-pegged stablecoin, citing ongoing regulatory developments within the European market. Conversely, a group of former Binance executives are actively entering the market with plans to launch a new euro-pegged stablecoin called EURØP through their firm, Schuman Financial, expected to go live within the next two weeks. This evolving landscape highlights both the challenges and opportunities within the European cryptocurrency sector.
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