Uphold to Delist Tether and Other USD Stablecoins Amid New European MiCA Regulations

• Uphold, an ODL partner for Ripple, has recently announced the delisting of several USD stablecoins, including Tether (USDT), TruUSD (TUSD), and Dai (DAI).
• This move aligns with the new MiCA regulation in Europe, which will be enforced starting June 30.
• Other major cryptocurrency exchanges like OKX, Binance, and Kraken have also adjusted their services for regulatory compliance.

Uphold to Delist Multiple Stablecoins Ahead of New EU Regulations: What Investors Need to Know

Uphold Delists USD Stablecoins to Align with MiCA Regulations

In a strategic move to comply with the upcoming Markets in Crypto Assets (MiCA) regulations, Uphold, a prominent crypto exchange and Ripple’s On-Demand Liquidity (ODL) partner, has announced it will delist several USD stablecoins by mid-2024. Affected stablecoins include Tether (USDT), Dai (DAI), and Frax Protocol (FRAX), among others.

Implications for Investors and Crypto Markets

Antony Welfare, Ripple’s Strategic Advisor for Central Bank Digital Currency (CBDC), disclosed Uphold’s delisting decision, which also affects Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). Customers holding these stablecoins are urged to convert their assets by June 27, 2024. If not converted by this deadline, these assets will be automatically exchanged into USD Coin (USDC) on June 28, 2024, to ensure compliance with MiCA regulations.

How Other Crypto Exchanges Are Responding

Other major cryptocurrency exchanges like Binance, OKX, and Kraken are also taking preemptive measures to meet MiCA regulatory requirements. For instance, Binance has introduced a sell-only policy for unauthorized stablecoins and has placed additional service restrictions. OKX has ceased support for USDT trading pairs within the EU, although it continues to offer trading for other stablecoins such as USDC. Kraken, on the other hand, is currently in the process of reviewing Tether’s compliance under the new European regulations.

The Future of Stablecoins Under MiCA Regulations

As the MiCA regulations require that stablecoin issuers in the EU must be licensed as Electronic Money Institutions (EMIs) or as credit institutions, this introduces a layer of complexity for USD-backed stablecoins. However, this regulatory framework is expected to provide greater legal and operational transparency for stablecoins, particularly those backed by the euro. This could potentially pave the way for the increased adoption of EUR stablecoins in the European financial ecosystem.

Conclusion

To sum up, Uphold’s decision to delist several USD stablecoins highlights a significant shift in the regulatory environment for the cryptocurrency market in Europe. As MiCA regulations come into force, investors and market participants should closely monitor these changes and adjust their strategies accordingly. These regulatory updates offer a glimpse into a more regulated future for the global crypto industry, emphasizing the need for compliance and strategic foresight.