Popular American cryptocurrency exchange Coinbase has made the decision to terminate its USDC earn service for customers in MiCA-compliant regions. This move comes as the company prepares to comply with the Markets in Crypto Assets (MiCA) regulations that are set to take effect on December 1, 2025.
Coinbase, headquartered in San Francisco, is a well-known blockchain firm that offers a range of regulated cryptocurrency trading services to both retail and institutional investors. With services available in over 100 countries worldwide, Coinbase has built a reputation for its secure and user-friendly platform.
The announcement to end the USDC earn program for MiCA-compliant regions was made on November 29, 2024, giving customers a short window before the service is discontinued. This decision aligns with Coinbase’s commitment to regulatory compliance and ensuring that its operations meet the requirements of the evolving cryptocurrency landscape.
Just 10 days prior to this announcement, Coinbase had launched its USDC yield program, offering customers the opportunity to earn a 4.7% return by holding USDC in their wallets on the blockchain. This program was met with enthusiasm from customers, particularly in the European Union, who were eager to generate passive income through their stablecoin holdings on the platform.
However, the implementation of MiCA has prompted Coinbase to make changes to its offerings in order to adhere to the new regulatory framework. This is part of a larger trend within the cryptocurrency industry, with many companies adjusting their services to ensure compliance with MiCA requirements.
In October of the same year, Coinbase had already announced plans to remove non-compliant stablecoins from its platform, following in the footsteps of other exchanges like Bitstamp and Binance. These changes reflect the industry’s ongoing efforts to align with regulatory standards and maintain a secure and transparent environment for cryptocurrency trading.
As the cryptocurrency landscape continues to evolve, Coinbase remains committed to providing a safe and compliant platform for its customers. The decision to end the USDC earn service in MiCA-compliant regions is just one example of the company’s dedication to regulatory compliance and ensuring the long-term sustainability of its operations.