oinbase">Coinbase is set to discontinue its USDC Rewards program across the European Economic Area (EEA), a decision driven by the impending implementation of the Markets in Crypto-Assets (MiCA) regulation, which is expected to be in full effect by December 30, 2024. The move is part of oinbase">Coinbase’s broader strategy to ensure compliance with new regulatory standards, including the earlier step of delisting certain non-compliant stablecoins within the region.
The push for compliance comes as the crypto industry adjusts to MiCA’s regulatory environment, which mandates crypto companies to secure appropriate EU registrations or licenses. This adjustment phase has also seen shifts in the stablecoin market, with some issuers, like Tether, withdrawing specific products like the Euro-pegged EURT stablecoin in pursuit of developing MiCA-compliant alternatives such as EURQ and USDQ.
In addition, oinbase">Coinbase announced the acquisition of Utopia Labs in September 2024, aiming to bolster its on-chain payment capabilities through its layer 2 network, Base. This acquisition signals oinbase">Coinbase’s continued investment in expanding its ecosystem to accommodate evolving on-chain payment systems.
