Coinbase, one of the world’s leading cryptocurrency exchanges, has announced that its Coinbase Earn program will no longer be available to customers in the European Economic Area (EEA) starting December 1, 2024. This decision comes in response to the new regulations under MiCA (Markets in Crypto-Assets), a comprehensive regulatory framework for digital assets in the EU.
The Coinbase Earn program allowed users to earn rewards based on the amount of USDC they held, with APY rates varying by region. However, MiCA has introduced stricter rules for stablecoins, which are considered crypto-assets pegged to the value of fiat currencies. As a result, Coinbase has been compelled to adjust its operations in the EEA to ensure compliance.
According to the announcement, EEA customers will receive their final rewards from the program on November 30, with payments expected within the first 10 business days of December. This marks a significant move by Coinbase and highlights the broader shift in how crypto companies are operating within Europe.
MiCA regulations are impacting not just Coinbase but also other major exchanges. Binance, for instance, has outlined a phased approach to transitioning users to compliant stablecoins, while Bitstamp has delisted certain tokens that do not meet MiCA’s requirements.
Additionally, Tether, the largest stablecoin issuer globally, is adjusting its strategy by focusing on developing new tokens like USDQ and EURQ to meet compliance standards.
While MiCA’s regulatory framework aims to enhance transparency and stability within Europe’s crypto market, it has sparked mixed reactions. Critics argue that the rules are stifling innovation and limiting opportunities for users to earn returns on digital assets. Nevertheless, one thing is clear: MiCA is reshaping the cryptocurrency industry in Europe in profound ways.