As a seasoned analyst with over two decades of experience in the financial industry, I find myself both amused and disheartened by the recent developments surrounding Coinbase and the MiCA stablecoin laws.
Coinbase is discontinuing its USDC interest programs for clients residing within the European Economic Area starting December 1, due to the regulatory requirements set by the MiCA regulations regarding stablecoins in this region.
On November 28th, an email about the USDC Rewards program being terminated by the crypto exchange was shared on platform X. This announcement, effective from December 1st, has left affected users disappointed, prompting them to voice their opinions about this decision online.
The service is set to terminate for all clients residing in the European Economic Area (EEA), a region comprising 30 countries, amongst which are the 27 EU member states, Iceland, Norway, and Liechtenstein. At present, Crypto.news has yet to receive confirmation from Coinbase regarding this report.
Despite the fact that Coinbase offers rewards for USDC (USDC) balances until November 30, their USDC Rewards program for European Economic Area (EEA) customers will be ending prematurely. This is because of the upcoming European Markets in Crypto-Assets (MiCA) regulation that brings new rules for stablecoins, which has prompted the move by the exchange.
MICA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA @coinbase @circle
— Marina Markezic (@MarinaMarkezic) November 28, 2024
In response to a recent post, the co-founder and CEO of Sablier’s token streaming protocol, Paul Berg, expressed his sarcasm by stating that he is “extremely thankful to the EU” for preventing him from earning interest on USD Coin assets held on Coinbase.
In response to Berg’s post, David Schwartz, the tech chief at Ripple Labs, pointed out that it seems ironic how regulations often prevent companies from providing customer-friendly services.
In a humorous twist, Schwartz pointed out that frequently, rules and regulations hinder businesses from actions that undeniably benefit consumers, according to his post.
2023 saw the introduction of stringent rules for crypto businesses and stablecoin issuers operating within the EU, under MiCA regulations. Among these rules, there’s a prohibition on providing interest on stablecoins, often known as “electronic money tokens.
Crypto and stablecoin firms are expected to fully comply with the new MiCA laws by Dec. 30.
In line with my earlier findings reported by crypto.news in October, I’d like to emphasize that Coinbase has declared its intention to remove non-compliant stablecoins from its European platform before year-end, as a reaction to the impending MiCA regulations. Among these coins, Tether (USDT) is one that may face delisting.
Tether announced on November 27 that they will stop providing support for the Euro-linked stablecoin EURT until a safer system is established. Customers who have EURT in their blockchain accounts have been given a deadline of November 27, 2025 to withdraw their holdings.
Moreover, Tether has disclosed its intentions to back Quantoz Payments as part of their strategy for developing MiCA-compliant stablecoins, namely EURQ and USDQ.
Read More
- Maiden Academy tier list
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- Cookie Run Kingdom Town Square Vault password
- Girls Frontline 2 Exilium tier list
- 10 Hardest Bosses In The First Berserker: Khazan
- `H&M’s Wild White Lotus Getaway`
- Tap Force tier list of all characters that you can pick
- Wizardry Variants Daphne tier list and a reroll guide
- ‘White Lotus’ Fans React to That Incest Kiss: “My Jaw Is On The Floor”
- ‘Bachelor’ Co-Executive Producers Exit Franchise
2024-11-29 11:16