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Uphold to Delist Six Stablecoins by July 1 in Compliance with MiCA

Key Insights:

  • Uphold will delist six stablecoins, including USDT, by July 1 to comply with new EU MiCA regulations.
  • Users must convert their affected stablecoins by June 28 or face automatic conversion to USDC.
  • MiCA’s strict new rules aim to increase stablecoin reliability and require issuers to hold 1:1 liquid reserves.

Cryptocurrency exchange Uphold has announced to its European users that it will cease support for six major stablecoins from July 1. The exchange cites compliance with the European Union’s Markets in Crypto-Assets Regulation (MiCA) as the reason for this decision.

Stablecoins Affected and Conversion Timeline

The stablecoins set to be delisted include Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). Users are advised to convert their holdings of these stablecoins to other cryptocurrencies by June 28. After this date, any remaining balances in these stablecoins will be automatically converted to USD Coin (USDC) by Uphold.

Uphold’s proactive measures are in response to the regulatory landscape shaped by MiCA, which was passed into law in May 2023. The regulation began to take effect partially in June 2023, with full enforcement expected by the end of 2024. The new rules impose stricter regulatory requirements on fiat-backed stablecoins and e-money tokens, especially those that surpass certain adoption thresholds.

MiCA’s Regulatory Framework for Stablecoins

On June 30, MiCA’s stablecoin regulations will be implemented across the European Economic Area. These regulations introduce stringent measures for fiat-backed stablecoins, requiring them to be backed by a 1:1 ratio of liquid reserves. Issuers must also maintain a reserve of assets held by a third party, isolated from other assets. The regulation bans algorithmic stablecoins outright, aiming to bolster consumer confidence by ensuring that stablecoins can be used reliably as stores of value and for payments.

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Under MiCA, stablecoin issuers must obtain licenses as credit institutions or Electronic Money Institutions. This move places the European Banking Authority in charge of stablecoins, shifting oversight from national authorities of individual EU member states. This regulatory shift is expected to create a more uniform and robust framework for stablecoins across the EU.

Response from Other Major Crypto Exchanges

In addition to Uphold, other prominent cryptocurrency exchanges have adjusted their stablecoin policies to align with MiCA regulations. Binance has categorized its stablecoins into “regulated” and “unauthorized” groups but has not yet finalized which coins fall into each category. Earlier in the year, OKX delisted Tether (USDT) in Europe, although it did not explicitly reference MiCA. Kraken is also evaluating whether to continue supporting USDT in the region.

OKX has confirmed that USDT trading pairs are no longer supported in the European Economic Area. A message from OKX’s customer support indicated that the availability of USDT trading pairs has been discontinued due to regulatory requirements. Moving forward, only EUR and USDC pairs will be accessible for spot trading on the platform. OKX has announced plans to launch over 30 new euro spot trading pairs to replace the USDT pairs.

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The implementation of MiCA is expected to bring clarity and security to the stablecoin market within the EU. Stablecoins backed by the euro may thrive under the new regulations, providing a stable and compliant alternative for digital currency users. However, the delisting of popular stablecoins like USDT and others signals a period of adjustment for both exchanges and users.

Uphold’s decision to delist these stablecoins is a direct response to the evolving regulatory environment. By aligning with MiCA’s requirements, Uphold aims to ensure compliance and maintain the trust of its users in the European market. As the regulatory landscape continues to evolve, other exchanges may follow suit, leading to further changes in the availability and usage of stablecoins within the EU.


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Curtis Dye

Curtis is a cryptocurrency news and analytics author with a focus on DeFi, BLockchain, CeFi, NFTs etc. He has publication skills such as SEO optimization, Wordpress, Surfer tools and aids his viewers with insights on the volatile crypto industry.

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