Coinbase to end USDC Rewards in Europe and Suspend Non-MiCA-Compliant Stablecoins
USDC Rewards Program Ends in EEA; Restrictions on Non-Compliant Stablecoins from December 2024
Key Takeaways:
USDC Rewards Sunset: Coinbase will end the USDC Rewards program for EEA customers due to MiCA regulations.
Stablecoin Restrictions: Non-compliant stablecoins, including USDT, DAI, and others, will face trading and custody restrictions from December 13, 2024.
MiCA-Compliant Assets: USDC and EURC will remain fully supported on Coinbase.
Adapting to MiCA Regulations
Coinbase is implementing significant changes in response to the European Markets in Crypto-Assets (MiCA) regulation, which introduces strict compliance requirements for e-money tokens and stablecoins. These changes affect Coinbase users across the European Economic Area (EEA) and Germany.
USDC Rewards Program Ends
Coinbase will sunset the USDC Rewards program for EEA customers on December 1, 2024. Eligible users will earn rewards on USDC balances until November 30, 2024, with the final payout distributed in the first 10 business days of December.
This change does not impact the ability to trade, send, or receive USDC on Coinbase. Customers can continue exploring alternative earning options, such as staking, or leverage USDC for trading across 200+ pairs, with free transfers on major networks like Base, Solana, and Polygon.
Restrictions on Non-Compliant Stablecoins
Starting December 13, 2024, Coinbase will restrict services for stablecoins that do not meet MiCA compliance requirements. Affected assets include:
USDT
DAI
PAX
PYUSD
GUSD
GYEN
These restrictions will apply to retail customers of Coinbase Europe Limited and Coinbase Germany GmbH and include the following limitations:
Trading: Buying, selling, or converting these assets will be disabled.
Custody: Users will no longer be able to hold these assets on Coinbase.
Receiving: Incoming transfers of these assets will be restricted.
Preparing for Changes
To adapt, users are encouraged to:
Convert MiCA-restricted assets to compliant alternatives like USDC or EURC.
Transfer affected assets to self-custody wallets before the restriction date.
Coinbase will review MiCA compliance for restricted assets and may re-enable their support if they achieve regulatory alignment in the future.
MiCA-Compliant Options
While MiCA introduces challenges for some assets, Coinbase ensures full support for USDC and EURC, offering customers compliant and versatile options.