- Coinbase has ended its USDC yield services in Europe.
- The decision came amid the implementation of MiCA in the EU.
- USDC yield will continue until November 30th.
Coinbase, a leading American digital asset trading platform, is pulling the plug on its USDC yield services in Europe, bowing to the pressure of the European Union’s new MiCA regulations. Meanwhile, US regulators are also casting a wary eye on crypto yield products.
The crypto exchange confirmed that the service will end for all its customers in the European Economic Area (EEA) on December 1st. This decision affects Coinbase users in EU member states as well as Iceland, Norway, and Liechtenstein. According to an email, all users of the USDC yield program will continue to earn rewards until November 30th.
Crypto infrastructure provider Sablier’s chief executive, Paul Berg, expressed his frustration about the change, attributing it to the recently introduced MiCA regulations. He sarcastically said that he is “very grateful to the EU” for protecting him against “earning a yield on my USDC holdings on Coinbase.”
On the other hand, Ripple’s chief technology officer, David “JoelKatz” Schwartz, highlighted that regulations often prevent companies from meeting their customers’ needs, even when those needs are “unarguably pro-consumer.”
Read also: EU’s DSA & MiCA: Tether CEO Raises Concerns for Crypto Market
Schwartz’s statement comes alongside Ripple’s RLUSD announcement, which is also expected to comply with MiCA regulations to gain a foothold in the regional market.
MiCA and the Future of Stablecoins in Europe
MiCA will regulate the stablecoin sector, alongside the broader digital asset space, to improve customer protection and promote financial stability. The regulatory framework will place strict requirements on stablecoin issuers while also treating asset-backed stablecoins and fiat-pegged stablecoins differently.
Issuers must maintain sufficient reserves to allow redemption at any time. They must also comply with strict frameworks, including transparent reporting of all transactions and related financial documents.
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