Coinbase will halt rewards for USD Coin (USDC) holders situated within the European Economic Area (EEA) on Dec. 1 due to the upcoming Markets in Crypto-Assets (MiCA) regulation, in accordance to an e-mail despatched to clients on Nov. 28.
The exchange mentioned the transfer is a results of the brand new necessities for e-money tokens, which is how stablecoins are labeled below MiCA. Users will proceed accruing yield with their USDC balances till Nov. 30, with the worth paid inside the first 10 enterprise days of December.
Coinbase’s USDC rewards program is obtainable in over 100 jurisdictions. It generates every day yields over customers’ USDC balances within the exchange, and the annual proportion yield (APY) varies relying on the consumer’s location.
Run for compliance
The MiCA guidelines for stablecoins have prompted a number of crypto companies within the EEA to make strikes to adapt to the evolving panorama. Coinbase revealed in early October that it plans to take away all non-compliant stablecoins from its platform in jurisdictions the place MiCA is efficient.
Bitstamp delisted Tether’s euro-pegged stablecoin Tether EURt (EURt) for not assembly MiCA necessities, whereas Binance determined to restrict companies associated to unregulated stablecoins in June.
Stablecoin issuer Tether has additionally made strikes to guarantee regulatory compliance. On Nov. 18, the crypto firm invested within the Dutch fintech Quantoz to enhance the creation of MiCA-compliant stablecoins EURQ and USDQ.
Additionally, Tether introduced on Nov. 27 that it will halt assist of its euro-pegged stablecoin EURt. Holders can redeem the tokens till Nov. 27, 2025.
Tether CEO Paolo Ardoino mentioned the corporate will focus on different initiatives till a “more risk-averse regulatory framework” exists in Europe. He added that MiCA represents potential banking systemic dangers.
