MiCA Ends USDC Yields for European Coinbase Users
Coinbase users in Europe are feeling the pinch of new crypto rules.
The European Union’s Markets in Crypto-Assets ( MiCA ) laws are forcing the exchange to shut down its USDC rewards program.
This change affects the European Economic Area (EEA), a group of 30 countries that includes all EU member states, Iceland, Norway, and Liechtenstein.
What’s Changing?
On November 28th, Coinbase informed users via email that the USDC yield program would officially end on December 1st due to MiCA regulations. Users in the EEA can still earn rewards until November 30th, but after that, the program is gone for good.
MiCA laws, which were introduced in June 2023, aim to tighten the rules for crypto firms and stablecoin issuers. One of these rules prohibits offering interest on stablecoins like USDC, also called “e-money tokens.” This is part of a broader effort to regulate the crypto industry in the region.
MICA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA @coinbase @circle pic.twitter.com/8GCGlpt8Xd
— Marina Markezic (@MarinaMarkezic) November 28, 2024
Not everyone is happy about these changes. Some Coinbase users and crypto leaders are voicing their frustrations online.
Why Does It Matter?
For many users, the USDC rewards program was a simple way to earn a little extra from their stablecoin holdings. With this program gone, some feel like they’re left high and dry, unable to make the most of their crypto assets.
Coinbase restricting stable coin trade in Europe in anticipation for Mica regulations. and are ending USDC yields program Dec 1st. $LCX is already regulated in terms of Mica and is positioned for major growth. Bullish pic.twitter.com/V8Moc2CuDu
— Gdawg (@nunsuseguns) November 29, 2024
For Coinbase and Circle, the issuer of USDC, staying in the EU means they must fully comply with MiCA rules by December 30. While these regulations aim to protect consumers, they also raise questions about whether they’re stifling innovation or limiting user benefits.
The Bigger Picture
The MiCA rules are a double-edged sword. On one hand, they provide much-needed clarity and safety for the crypto market . On the other hand, they leave some consumers wondering if they’re losing out on valuable opportunities.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hedera Token Sees $2B Trading Spike Amid 5% Rally
ChatGPT’s head of product to testify in the DOJ’s antitrust case against Google
Share link:In this post: ChatGPT’s head of product, Nick Turley, has been added as a witness for the United States Department of Justice (DOJ) in its antitrust case against Google. Nick Turley is the latest addition to the witness list that features representatives from Perplexity and Microsoft. Google ramps up preparation for Turley’s testimony by asking for documents related to the hearing from OpenAI through a subpoena.
SEC charges New York blockchain engineer over GME rug pull fraud
Share link:In this post: Eric Zhu settled SEC fraud claims for orchestrating a rug pull scheme involving Game Coin. Zhu allegedly misappropriated $553K by moving unlocked liquidity provider tokens to his control. The case marks one of SEC Chair Gary Gensler’s final enforcement actions.