Cryptocurrency enthusiasts in Europe expressed their discontent as Coinbase
$3.04 billion
finished your USD coin
USDC
$0.9951
rewards program due to new regulations under the Cryptoasset Markets (MiCA) framework of the European Union (EU).
Coinbase announced changes via email on November 28. The email explained that the USDC rewards program ends December 1 for customers in the European Economic Area (EEA)including all EU member states.
The rewards will be continue to accumulate until November 30 for those qualifiedbut after that, the program will close.
Did you know?
Do you want to become smarter and richer with cryptocurrencies?
Subscribe: We publish new cryptocurrency explainer videos every week!
What is Polkadot in crypto? (DOT Animated Explanation)
The announcement sparked a wave of sarcasm and criticism online. Paul Berg, co-founder of Sablier, aware:
Very grateful to the EU for protecting me from earning returns on my USDC holdings on Coinbase.
Another user, @SaravanjaFilip, aggregate his sarcastic comment: “Many thanks to EU legislators… I can now confidently walk into my bank and secure a guaranteed real return of -90% compared to inflation. Financial security at its finest.”
MiCA ruleswhich became law in June 2023, set strict guidelines for crypto companies operating in the EU. Among other things, they prohibit offering interest on stablecoins, called “electronic money tokens.”
As a result, companies like Coinbase and Circle, the USDC creator, You must fully comply with these rules by December 30.
Not everyone agrees with the regulations. David Schwartz, Chief Technology Officer (CTO) at Ripple Labs, commented In Berg’s post, “It’s funny how often regulations prevent companies from doing things that are inarguably pro-consumer.”
The end of Coinbase’s USDC rewards program is just one example of the changing trends in the stablecoin market. Recently, Tether also made waves by discontinuing support for its euro-pegged stablecoin, EURT. What led to this surprising decision? Read the full story.
Having completed a master’s degree in Economics, Politics and Cultures of the East Asian region, Aaron has written scientific articles analyzing the differences between Western and collective forms of capitalism in the post-World War II era.
With almost a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that cryptocurrency enthusiasts face. He is a passionate analyst who cares about data- and fact-based content, as well as that which speaks to both Web3 natives and newcomers to the industry.
Aaron is the go-to person for all things digital currencies. With a strong passion for blockchain and Web3 education, Aaron strives to transform the space as we know it and make it more accessible to beginners.
Aaron has been quoted by several established media outlets and is a published author himself. Even during his free time, he likes to research market trends and look for the next supernova.
