US-based Coinbase Drops Plans to Enter Turkish Market

Coinbase has withdrawn its pre-application to enter Turkey’s cryptocurrency market, according to a November 29 update from the country’s financial regulator

Cryptocurrency exchange Coinbase has withdrawn its pre-application to operate in Turkey’s cryptocurrency market, according to an update on November 29 by the country’s financial regulator, which listed the company among those requesting liquidation.

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

Coinbase Drops Plans to Enter Turkey Crypto Market

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

Seventeen companies had submitted pre-applications for crypto exchange licenses in Turkey, and 14 of them, including QNB Digital Assets, Bitget, Finceptor, Koinim, Stanfex, and XYZ Technology, have now filed for liquidation.

Meanwhile, Bitfinex, Bitbns, Bitlo, OKX, and Rain Software are among the companies that continue to pursue licenses for custody services in Turkey. The total number of liquidation filings has reached 14, while 77 applications remain active.

Coinbase, Turkey Crypto Exchange Applications Update

The seven companies that have filed for liquidation and are no longer pursuing crypto exchange licenses in Turkey are:

QNB Digital Assets

Bitget

Finceptor

Koinim

Stanfex

XYZ Technology

Coinbase Interest in Turkey Crypto Market Wanes

Coinbase had initially shown interest in expanding its presence in Turkey’s growing cryptocurrency market, which has seen a surge in interest and adoption in recent years.

However, the company’s withdrawal from the pre-application process indicates a shift in strategy or a decision to prioritize other markets for the time being. Coinbase has not disclosed any specific reasons for its decision.

Despite the exits of several companies, the Turkish crypto market continues to attract interest from both domestic and international players, with a significant number of applications still being considered by the financial regulator.

The final list of licensed exchanges and custody providers is expected to be announced in the coming months, following the completion of the application and approval process.Coinbase Ends USDC Rewards in EEA

Coinbase will discontinue USDC rewards in the European Economic Area (EEA) starting December 1, according to a customer email on November 28. The move comes in response to the recently approved Markets in Crypto-Assets (MiCA) regulation, which will impose new compliance requirements on e-money tokens like USDC.

Qualified users can continue earning rewards until November 30, and final payouts will be distributed within the first 10 business days of December. The email also states that the rewards program will be fully discontinued on December 31.

Coinbase had previously offered varying yields for holding USDC, which were available in over 100 jurisdictions worldwide. The yields varied depending on the region and the amount of USDC held by the user.

MiCA, which will go into effect from June 2023, will introduce a regulatory framework for crypto-assets in the EU. It will impose specific rules on the issuance, trading, and custody of crypto-assets, aiming to enhance market integrity, consumer protection, and financial stability.

Among other provisions, MiCA will restrict the offering of interest on e-money tokens, such as USDC, starting June 30, 2024. This measure is intended to align with the prohibition on offering interest by e-money institutions under the EMD II Directive.

Coinbase USDC Rewards Program Details

The Coinbase USDC rewards program allowed users to earn daily yields for simply holding USDC in their Coinbase accounts. The program was available to users in over 100 jurisdictions, excluding the United States and Canada.

The yields offered by Coinbase varied depending on the region and the amount of USDC held by the user. In some regions, such as the European Economic Area (EEA), users could earn yields of up to 1.5% APY. The yields were credited to users' accounts on a daily basis and could be viewed in the Coinbase Rewards Hub.

To be eligible for the rewards, users needed to maintain a minimum balance of USDC in their Coinbase accounts throughout the day. The rewards were calculated based on the average daily balance of USDC, and any withdrawals or deposits made during the day would be reflected in the calculation.

Coinbase stated that the USDC rewards program was designed to provide users with an easy and convenient way to earn passive income on their crypto holdings, while also promoting the adoption and usage of USDC as a stablecoin.