American crypto exchange Coinbase will stop offering rewards to holders of the USD Coin (USDC) stablecoin located in the European Economic Area (EAA) on November 1.
In a note to clients, the exchange explained that the move had been triggered by “new requirements for e-money tokens” that are expected to come into effect with the upcoming adoption of the Markets in Crypto Assets (MiCA) regulations in the region.
USDC Reward Program Set for Sunsetting
The USDC rewards program allows Coinbase users in over 100 jurisdictions to earn interest on their stablecoin holdings. The yield, whose rate varies from country to country, is paid monthly and automatically deposited into users’ accounts.
According to the note, eligible users living within the EAA will continue earning interest on their USDC until November 30, with the program sunsetting the following day. Additionally, the exchange confirmed that customers will still be able to receive their payouts from the scheme within the first ten business days of December. That gives them until December 13 to claim their funds.
Crypto Companies Adjusting to MiCA
MiCA is a comprehensive regulatory framework established by the European Union (EU) to govern the crypto sector. It creates a uniform set of rules for the issuance, trading, and provision of crypto-related services across all 27 EU members.
It has caused many digital asset companies operating in Europe to rejig their offerings to stay compliant. In October, Coinbase announced that it would remove all non-compliant stablecoins from its EU platform. On its part, Bitstamp has delisted Euro Tether (EURt), Tether’s euro-pegged stablecoin, which it said did not satisfy MiCA requirements.
Tether is developing MiCA-compliant products following its acquisition of a stake in Quantoz, a fintech company based in the Netherlands. It also stated it would stop supporting EURt, with holders given until November 27, 2025, to redeem their tokens.
While Coinbase’s decree covers customers across the EAA, three countries, Norway, Iceland, and Lichtenstein, are not members of the EU, where MiCA will be active. However, to ensure their participation in the EU’s internal market, they often adopt many of the measures fronted by the union. As such, while not automatically bound by MiCA, analysts believe they may choose to adopt similar regulations.
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