Coinbase Users Enraged Over MiCA Compliance Impact on USDC

European Union customers of Coinbase Exchange have called out the firm over the impact of its MiCA compliance on USDC

Europe’s Coinbase users are unhappy over the region’s Markets in Crypto-Assets (MiCA) regulations. These rules have changed how Coinbase operates. Due to these changes, Coinbase announced it will stop its USDC rewards program for users in the European Economic Area (EEA).

No more Yield-offering on USDC Till Further Notice

According to an email, the Coinbase exchange announced that starting December 1, it will not offer yield-earning options on USD Coin (USDC) for European Economic Area (EEA) customers. This change is due to new rules surrounding stablecoins. Notably, this decision significantly impacts European users using the rewards program to earn passive income on their USDC holdings.

Coinbase will officially end its rewards program on December 1. However, eligible users can still earn rewards until November 30. The company has assured customers that other services and features will continue as usual, but many users are disappointed by the sudden end of the rewards program.

MiCA is a new regulatory framework for cryptocurrency in the European Union that aims to provide clarity and oversight in the digital asset market. Paul Berg, the co-founder and CEO of Sablier, a crypto infrastructure provider, sarcastically expressed his gratitude to the EU for protecting him from earning yield on his USDC holdings on Coinbase.

In reply to Berg’s post, Ripple Labs technology chief David Schwartz affirmed that it is funny how regulations often prevent companies from doing things that are unarguably pro-consumer. 

Meanwhile, Coinbase has yet to confirm whether it will reinstate the program once MiCA regulations are fully in place or if this change is permanent. As the crypto industry adjusts to stricter rules, users and platforms try to balance following these rules while offering attractive services.

Quantoz Floats MiCA-Compliant Stablecoin

As such, Quantoz, a fintech company based in the Netherlands, launched two stablecoins, EURO(EURQ) and USDQ, pegged to the U.S. Dollar. As reported by BGECrypto, Quantoz’s EURQ and USDQ are stablecoins issued on the Ethereum blockchain. The stablecoins also follow strict rules and are fully backed by real money and quickly tradable financial products.

Users can trade the tokens on Bitfinex and Kraken, two well-known cryptocurrency exchanges. Only eligible users can participate in trading. This step shows the company’s commitment to following financial rules while providing safe and reliable digital payment options. Meanwhile, this launch is important because the MiCA framework introduces new laws for stablecoin issuers in the EU.

Additionally, Quantoz received an Electronic Money Institution (EMI) license from the Dutch Central Bank. This license allows the company to issue electronic money and offer payment services in the EEA. The EMI license shows that Quantoz meets strict regulatory standards and strengthens its reputation as a reliable player in the European fintech.

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