Coinbase users in Europe shared frustrations over the region's crypto regulations after the exchange said it is ending its yield offering on the dollar-pegged stablecoin USD Coin USDC $0.9999 for some users.

In a Nov. 28 email that multiple recipients posted on Twitter, Coinbase said due to the European Union's Markets in Crypto-Assets (MiCA) laws for stablecoins

Coinbase users in Europe expressed frustration over the region’s crypto regulations on Nov. 28 after the exchange announced it is ending its yield offering on the dollar-pegged stablecoin USD Coin (USDC) for some users.

In an email that multiple recipients posted on X, Coinbase said that due to the European Union’s Markets in Crypto-Assets (MiCA) laws for stablecoins, it “will be sunsetting the USDC rewards program” on Dec. 1.

The change will affect customers in the European Economic Area (EEA), a 30-nation bloc that includes all 27 EU member states along with Iceland, Norway and Liechtenstein. The email said that those eligible will still accrue rewards for the next two days until Nov. 30.

“Very grateful to the EU for protecting me against earning a yield on my USDC holdings on Coinbase,” Paul Berg, the co-founder and CEO of crypto infrastructure provider Sablier, wrote in a sarcastic X post on Tuesday.

I feel protected. Thanks @Coinbase for the heads up on the USDC rewards ending on Dec 1. I'm sure the EU is looking out for my best interest here.

— Mikko Ohtamaa (@MikkoOhtamaa) November 28, 2023

Crypto firms including Coinbase and USD Coin issuer Circle, which are staying in the EU, must fully comply with the MiCA laws by Dec. 30.

The laws, which entered into force in June 2023, saw a wide-ranging and strict set of rules for crypto firms and stablecoin issuers that included a prohibition on offering interest on stablecoins, or so-called “e-money tokens.”

“It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer,” Ripple Labs technology chief David Schwartz wrote in response to Berg's post.

Meanwhile, Tether, issuer of the US dollar stablecoin of the same name, said on Nov. 27 that it's dropping support for its euro-pegged token. A group of former Binance executives are also set to launch a euro-pegged stablecoin in the next two weeks.