Uphold delists some stablecoins following the footsteps of other top exchanges like Binance and OKX as the EU gets set for new crypto regulations.
Uphold, a crypto exchange headquartered in New York appears to be preparing for the European Union’s forthcoming Markets in Crypto-Assets (MiCA) regulation. Because of this, the exchange has delisted numerous prominent stablecoins.
Maintain the Crypto Exchange’s Ultimatum to Users
This action is being taken in anticipation of MiCA, a regulatory framework for crypto-assets in the European Economic Area (EEA), scheduled to be implemented on June 30, 2024.
It is worth noting that Uphold’s announcement is not an isolated event. It is consistent with the actions of other prominent exchanges, such as Binance, Kraken, and OKX, who are concerned about the potential consequences of the forthcoming regulations.
Antony Welfare, a senior counsel to CBDC Europe and Global Partnerships at Ripple, has shared a notice indicating that Uphold will cease to support Tether (USDT), Dai (DAI), Frax (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD) effective July 1. To this end, the platform has recommended that users who possess any of these stablecoins convert them on or before June 27. In other words, to prevent the automatic conversion to USDC on June 28.
The MiCA Framework
Stablecoins are particularly affected by MiCA’s influence. Stablecoin issuers within the European Economic Area (EEA) will be required to obtain licensing as Electronic Money Institutions (EMIs) or credit institutions under the new regulations. This creates uncertainty for numerous stablecoins, while euro-backed alternatives are anticipated to benefit from the regime.
Regarding regulatory clarity, the forthcoming regulations are a significant victory for Europe. Nevertheless, some exchanges, such as Uphold, have chosen to delist the coins outright, while others, such as Kraken, are still evaluating the potential impact on specific stablecoins, such as USDT. The Kraken exchange is considering its options concerning the continued listing of USDT on its platform. It may decide to delist it upon the conclusion of the ongoing review.
MiCA’s implementation is poised to influence the European crypto market in a manner that the world may need to learn from, regardless of the outcome. However, a significant point to consider is that USDC may serve as a secure sanctuary for stablecoin transactions in the region.