Popular American Crypto exchange Coinbase has made the decision to terminate its USDC earn service for customers in MiCA-compliant regions. Coinbase, known for its highly regulated crypto trading services, is based in the US with its headquarters in San Francisco. The exchange offers a variety of crypto-focused services to both retail and institutional investors globally, operating in over 100 countries.
On November 29, 2024, Coinbase announced that it will be discontinuing its USDC earn program for customers in regions where Markets In Crypto Assets (MiCA) regulations will be enforced. In order to comply with MiCA regulations, Coinbase will be ending its USDC yield service. The new phase of MiCA regulations is set to take effect on December 1, 2025, meaning this decision will come into effect within a few days.
Just 10 days prior, on November 20, 2024, Coinbase had launched its USDC yield program, allowing customers to earn a 4.7% return by holding USDC in their wallet on the chain. This news comes as a disappointment to EU-based Coinbase customers who were looking forward to earning passive income by holding their stablecoin funds within the Coinbase ecosystem.
This move by Coinbase is in line with the trend seen this year, where many crypto companies have made changes to their services to comply with MiCA regulations. In October, Coinbase announced that it would be removing all non-compliant stablecoins from its platform. Similarly, Bitstamp removed Tether’s euro-pegged stablecoin, Tether EURt (EURt), for not meeting MiCA requirements. Binance also planned to limit services related to unregulated stablecoins in June.
It is evident that the crypto industry is adapting to regulatory changes, and companies like Coinbase are taking proactive steps to ensure compliance with evolving regulations. Customers in MiCA-compliant regions will need to adjust to these changes as the industry continues to mature and navigate the regulatory landscape.