Coinbase Ends USDC Rewards in Europe Due to MiCA Regulations

Crypto exchange Coinbase is discontinuing its USDC Rewards program for customers in the European Economic Area (EEA) on December 1, 2024, to comply with the EU's Markets in Crypto-Assets (MiCA) regulations. The decision follows MiCA's stricter rules on stablecoins, categorizing them as electronic money tokens (EMTs) and prohibiting interest-earning features. Impacted users will receive final payments by early December. Despite dissatisfaction among customers, Coinbase had previously hinted at the change and plans to assist European users in transitioning to compliant stablecoins. This move aligns with Tether's decision to halt euro-backed token minting in Europe. The regulatory landscape is evolving, with companies like Coinbase and Tether adapting to comply with MiCA requirements. The industry faces challenges as regulations impact services and offerings, prompting discussions on the implications of these changes. Read more AI-generated news on: https://app.chaingpt.org/news