$MCoinbase has decided to make changes to its operations in Europe. The exchange is preparing to impose restrictions on some altcoins as the MiCA (Markets for Crypto Assets) regulations come into force. Here are all the details of the developments…
Coinbase Moves to Altcoin Restrictions Due to MiCA Regulations
With the MiCA regulations expected to be fully implemented in December 2024, Coinbase is taking steps to ensure its operations in the European Economic Area (EEA) are compliant. On November 1, US-based crypto exchange Coinbase announced that it would stop offering rewards to holders of its USD Coin (USDC) stablecoin in the EEA. The exchange said in a statement to its customers that the change was due to “new requirements for e-money tokens” that are expected to come into effect with the adoption of the MiCA regulations in the region. The USDC rewards program allowed Coinbase users to earn interest on their stablecoin holdings. The interest rates, which varied from country to country, were paid monthly and automatically deposited into users’ accounts. Coinbase announced that eligible users in the EEA region would continue to earn interest until November 30, after which the program would end. It also added that users would be able to claim their rewards until December 13.
Coins That Continue to Operate with MiCA Compliance and Restrictions
While stablecoins like USDC and EURC continue to trade with MiCA compliance, restrictions will be applied to some altcoins. According to Coinbase, crypto assets like USDT, PAX, PYUSD, GUSD, GYEN, and DAI do not comply with MiCA requirements. For this reason, some restrictions may be applied to these coins. MiCA is a comprehensive framework created by the European Union (EU) to regulate the crypto industry. It provides a uniform regulation for the provision, trading, and management of crypto services across the 27 EU member states. Many crypto companies have had to restructure their offerings to comply with these regulations. In October, Coinbase announced that it would remove all stablecoins that were not MiCA compliant from its EU platform. Bitstamp, on the other hand, announced that it had delisted Tether’s euro-pegged stablecoin Euro Tether (EURt) due to non-compliance with MiCA requirements.
Tether’s Steps to Develop MiCA-Compatible Products
Tether has begun working on developing MiCA-compliant products after acquiring a stake in Dutch fintech firm Quantoz. It also said it would stop supporting EURt and give holders until November 27, 2025 to redeem their tokens. Coinbase’s decision covers customers across the EEA, but three countries — Norway, Iceland, and Lichtenstein — are not among the EU member states where MiCA applies. However, since these countries are generally integrated into the EU’s internal market, they may choose to adopt MiCA-compliant regulations.