Europe’s Coinbase users frustrated as MiCA forces sunset of USDC yield
Coinbase users in Europe are expressing frustration over the MiCA laws, which require the cessation of yield offerings on the stablecoin USD Coin (USDC). In a recent email, Coinbase informed users in the European Economic Area (EEA) that the USDC rewards program will end on December 1, due to new EU regulations that prohibit interest on stablecoins. This change impacts customers across the 30-nation bloc, including all EU member states. Users have sarcastically remarked on social media about the perceived 'protection' these regulations offer them, highlighting concerns that such regulations limit consumer benefits. Crypto firms like Coinbase and Circle must fully comply with MiCA regulations by the end of December 2023. These laws, which began being enforced in June 2023, institute a stringent framework for stablecoin issuers. Meanwhile, Tether announced it would launch a euro-pegged token amid ongoing regulatory changes. Former Binance executives are also developing their own euro-pegged stablecoin to be released soon. Coinbase has not yet provided further comments on the situation.
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