MiCA сompliance forces Coinbase to end 4.35% USDC rewards for EEA users
Outside Europe, the program continues to operate
According to Coinbase, the cryptocurrency exchange will discontinue its USDC rewards program in the European Economic Area (EEA) starting December 1.
The change is attributed to the requirements of the Markets in Crypto-Assets (MiCA) regulation, which aims to establish a unified legal framework and standardize operations for digital assets across Europe.
The USDC rewards program, available in over 100 countries, allows users to earn daily interest based on the amount of USDC held in their accounts. According to the USDC website, the minimum annual yield for USDC deposits is 4.35%.
More and more restrictions
Coinbase assured users that the USDC rewards program will continue in other jurisdictions and stated that it is exploring new opportunities for its European customers.
This move highlights the adjustments crypto platforms may need to make as the unified European standards take effect. In early October, Coinbase announced plans to delist all stablecoins not compliant with MiCA in regions where the rules apply.
Other exchanges are also adapting. Bitstamp recently delisted the euro-pegged stablecoin Tether (EURt), citing its inability to meet new regulatory requirements. Earlier in June, Binance limited services related to unregulated stablecoins to comply with the changing regulatory landscape.
Since its launch in 2019, WBTC has played a key role in providing Bitcoin liquidity for DeFi markets, fostering the growth of decentralized exchanges and lending platforms. However, as the cryptocurrency landscape evolves, exchanges like Coinbase periodically reassess the relevance of listed tokens.
Notably, Coinbase recently introduced its own wrapped Bitcoin token, cbBTC, on the Ethereum and Base networks. cbBTC directly competes with WBTC and has already reached a market capitalization of $1.3 billion, surpassing 15,000 tokens in circulation.
