Coinbase, one of the largest cryptocurrency exchanges, is changing its services in Europe. The exchange will start the restriction process for some altcoins with the approach of regulations called MiCA. Here are all the details…
Coinbase restricts some altcoins with MiCA
With MiCA set to be fully implemented in December 2024, Coinbase is working to ensure its offerings in the EEA are compliant. American crypto exchange Coinbase will stop offering rewards to holders of USD Coin (USDC) stablecoins in the European Economic Area (EEA) on November 1st. In a note to its customers, the exchange explained that the move was triggered by “new requirements for e-money tokens” that are expected to take effect with the upcoming adoption of the Markets in Crypto Assets (MiCA) regulations in the region.
The USDC reward program allows Coinbase users in more than 100 jurisdictions to earn interest on their stablecoin holdings. The return, the rate of which varies from country to country, is paid monthly and automatically credited to users’ accounts. According to the note, eligible users living within the EAA will continue to earn interest on their USDC until November 30. Thus, the program will end the following day. Furthermore, the exchange confirmed that clients can continue to receive their payments from the program within the first ten business days of December. This gives them until December 13 to claim their funds.
On the other hand, while USDC and EURC continue trading with MiCA compliance, some altcoins are not so lucky. According to Coinbase’s announcement, USDT, PAX, PYUSD, GUSD, GYEN and DAI are on the agenda. These cryptocurrencies do not comply with these MiCA rules. Therefore, it is possible to see some restrictions on these cryptocurrencies.
What are the crypto companies that comply with MiCA?
MiCA is a comprehensive regulatory framework created by the European Union (EU) to govern the crypto sector. It establishes a uniform set of rules for the issuance, trading and provision of crypto-related services across all 27 EU members. It has caused many crypto asset companies operating in Europe to reorganize their offerings to remain compliant. In October, Coinbase announced that it would remove all non-compliant stablecoins from its EU platform. Bitstamp delisted Tether’s euro-pegged stablecoin Euro Tether (EURt), which it said did not meet MiCA requirements.
Tether has been developing MiCA-compliant products after acquiring a stake in Quantoz, a Netherlands-based fintech company. It also said it would stop supporting EURt. Specifically, it said it would give holders until November 27, 2025 to redeem their tokens. While Coinbase’s decree covers customers across the EAA, three countries, Norway, Iceland and Lichtenstein, are not members of the EU where MiCA will be active. However, to ensure their participation in the EU’s internal market, they usually adopt most of the measures taken by the union. Therefore, while they are not automatically bound by MiCA, analysts believe that they could choose to adopt similar regulations.
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