Coinbase ends USDC return program for users in the European Economic Area citing new EU regulations

The top US-based crypto exchange by trading volume is ending its USDC Rewards program for European users.

According to a screenshot shared by Marina Markezic, Coinbase is letting customers in the European Economic Area (EEA) know that the bet on USDC is coming to an end due to Markets in Crypto-Assets (MiCA) regulations.

“MICA kicks in -> Sunset USDC Rewards in EU due to MiCA.”

Said Ripples Chief Technology Officer (CTO) David Schwartz on the matter,

“It’s funny how often regulations prevent companies from doing things that are arguably pro-consumer.”

That was it reported in October that Coinbase would end support for non-MiCA-compliant stablecoins.

“Given our commitment to compliance, we intend to limit the provision of services to EEA users in connection with stablecoins that do not meet MiCA requirements by December 30, 2024.”

MiCA provides rules covering regulatory, consumer protection and environmental protection for crypto-assets. The legislation includes measures aimed at reducing financial crime including market manipulation, money laundering and terrorist financing.

MiCA also placed stablecoin issuers under the European Banking Authority and requires them to hold sufficient liquid reserves. The part of the legislation covering stablecoins came into force in June, while the rest is scheduled rolled out in December.

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