Coinbase, the leading US-based cryptocurrency exchange, is making changes to its USDC Rewards program for European users. As per a screenshot shared by Marina Markezic, Coinbase is informing clients in the European Economic Area (EEA) that USDC staking will be discontinued due to the implementation of Markets in Crypto-Assets (MiCA) regulations.
MiCA regulations, which aim to regulate the supervision, consumer protection, and environmental safeguards of crypto assets, are the reason behind this decision. Ripple’s Chief Technology Officer (CTO) David Schwartz commented on the situation, expressing his thoughts on how regulations can sometimes hinder consumer-friendly initiatives.
In line with its commitment to compliance, Coinbase had previously announced that it would cease support for stablecoins that do not comply with MiCA requirements. The company stated that services for EEA users related to non-MiCA-compliant stablecoins would be restricted by December 30, 2024.
MiCA legislation places stablecoin issuers under the supervision of the European Banking Authority and requires them to maintain adequate liquid reserves. The part of the legislation governing stablecoins came into effect in June, with additional measures set to be implemented in December.
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As the regulatory landscape continues to evolve, cryptocurrency exchanges like Coinbase are adapting to ensure compliance and protect consumers. The changes in the USDC Rewards program for European users highlight the importance of staying informed and compliant in the ever-changing world of cryptocurrencies.