USDC Rewards Program Ends in Europe as MiCA Rules Take Effect

Coinbase is set to end its USDC rewards program for users in the European Economic Area (EEA) starting December 1, a move driven by compliance with the upcoming Markets in Crypto-Assets (MiCA) regulation.

This decision means EEA-based users have until November 30 to earn their final rewards, which will be distributed in the first ten business days of December.

The Coinbase Earn program has been offering yields on USDC holdings to users worldwide, with rates varying by location. However, MiCA’s classification of stablecoins as E-money tokens has prompted Coinbase to phase out the rewards for EEA customers to align with the regulation’s stricter requirements.

MiCA aims to create a unified regulatory framework for digital assets across the EU, driving exchanges to adjust their offerings or face delisting non-compliant assets.

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Other players in the crypto space are also adapting to MiCA’s evolving landscape. Tether has shifted its focus to creating compliant tokens like USDQ and EURQ while scaling back other initiatives. Bitstamp has already delisted certain stablecoins, such as Tether’s Euro-pegged EURt, and restricted access to non-compliant tokens for European customers.

Binance, in turn, has taken a phased approach to ensure its stablecoin offerings meet MiCA’s requirements, implementing gradual restrictions to minimize market disruption.

The regulatory overhaul marks a significant change for stablecoin issuers and exchanges operating in Europe, reshaping the way these assets are managed and traded in the region.

Alexander Stefanov