Coinbase Exits Turkey Plans, Adjusts USDC Rewards Amid MiCA Compliance

Coinbase has withdrawn its pre-application to enter Turkey’s cryptocurrency market, according to a November 29 update from the country’s financial regulator, which listed the company among those requesting liquidation.

Separately, Coinbase will discontinue USDC rewards in the European Economic Area (EEA) starting December 1, citing compliance with the MiCA regulation in a November 28 email to customers.

Turkey Crypto Market Faces Shifts

QNB Digital Assets, a division of Qatar National Bank in Turkey, also filed for liquidation. Other entities marking closure include Bitget, Finceptor, Koinim, Stanfex, and XYZ Technology.

Despite these exits, companies like Bitfinex, Bitbns, Bitlo, OKX, and Rain Software continue to pursue licenses for custody services in Turkey. The number of liquidation filings has now reached 14, while 77 applications remain active.

US-based Coinbase, one of world's largest cryptocurrency exchanges, drops plans to enter Turkish market

Coinbase had expressed interest in Turkey’s expanding crypto market earlier this year. The reason for its withdrawal remains unclear, and the company has not commented on the matter.

Coinbase Ends USDC Rewards in EEA

Last week, Finance Magnates reported that Coinbase will end USDC rewards for holders in the European Economic Area (EEA) starting December 1, following the new Markets in Crypto-Assets (MiCA) regulation, according to a customer email sent on November 28.

Qualified users can continue earning rewards until November 30, with final payouts distributed within the first 10 business days of December. The rewards program allowed users to earn daily yields for holding USDC, available in over 100 jurisdictions, with yields varying by region.

MiCA, effective from June 2023, imposes new compliance requirements for e-money tokens like USDC. Starting June 30, 2024, issuers must be licensed as credit or electronic money institutions and meet strict standards, including reserve management and liquidity requirements, while being prohibited from offering interest.