Uphold’s announcement follows similar actions from other popular exchanges, including Binance, Kraken, OKX, and others.
New York-based crypto exchange Uphold appears to be getting ready for the European Union’s new Markets in Crypto-Assets (MiCA) regulation. In line with this, the popular exchange has delisted several popular stablecoins.
Uphold Crypto Exchange Issues Ultimatum to Users
This move comes in anticipation of MiCA, a regulatory framework for crypto-assets in the European Economic Area (EEA), which is set to take effect on June 30th, 2024.
Notably, Uphold’s announcement is not a solitary move. It follows similar actions from other popular exchanges, including Binance, Kraken, OKX, and many others, who do not wish to be caught on the wrong side of the upcoming regulations.
According to a notice shared by Antony Welfare, a senior advisor to CBDC Europe and Global Partnerships at Ripple, Uphold will discontinue support for Tether (USDT), Dai (DAI), Frax (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD) starting July 1st. To this end, the platform has advised users holding any of these stablecoins to convert them on or before June 27th. That is, to avoid automatic conversion to USDC on June 28th.
The MiCA Framework
MiCA’s impact is particularly significant for stablecoins. Under the new rules, stablecoin issuers operating within the EEA will need licensing as Electronic Money Institutions (EMIs) or credit institutions. This raises uncertainty for several stablecoins, while euro-backed options are expected to enjoy the regime.
The upcoming regulations look to be a major win for Europe in terms of regulatory clarity. However, while some exchanges like Uphold have opted for outright delistings, others like Kraken are still reviewing the impact on specific stablecoins like USDT. The Kraken exchange is currently weighing its options as it relates to keeping USDT listed on its platform and might decide to delist it upon completion of the ongoing review.
Whatever happens, MiCA’s implementation is set to shape the European crypto market in ways that the world may need to learn from. A major takeaway, however, is that USDC may just emerge as a safe haven for stablecoin transactions in the region.
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