Coinbase ends USDC rewards in Europe under MiCA compliance

Coinbase is discontinuing its USDC (CRYPTO:USDC) rewards program for users in the European Economic Area (EEA) due to the European Union's Markets in Crypto-Assets (MiCA) regulations.

The program, which offered yield on USD Coin (USDC) holdings, will officially end on December 1.

In a November 28 email shared by multiple users on X, Coinbase announced the decision, attributing it to compliance with MiCA laws that prohibit interest on stablecoins, referred to as "e-money tokens."

Affected users will continue to accrue rewards until November 30.

The change impacts users in the EEA, which includes all EU member states along with Iceland, Norway, and Liechtenstein.

Paul Berg, CEO of Sablier, expressed his frustration on X, sarcastically thanking the EU for "protecting" him from earning yield on his holdings.

Others in the crypto community echoed similar sentiments, criticising the regulations as restrictive and anti-consumer.

MiCA, which came into effect in June 2023, imposes strict requirements on crypto firms and stablecoin issuers operating in the EU.

Full compliance with the rules is required by December 30.

"It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer," commented Ripple Labs CTO David Schwartz.

Meanwhile, Tether (CRYPTO:USDT) recently announced the discontinuation of its euro-pegged token, citing regulatory challenges in the European market.

However, Schuman Financial, a company founded by former Binance executives, plans to launch a euro-pegged stablecoin, EURØP, within the next two weeks.

At the time of reporting, the USDC price was $1.00.