Uphold exchange to delist multiple stablecoins for European users: here’s why
A leading crypto exchange, Uphold, revealed that it will cease support for several stablecoins for its European customers from 1 July.
The assets in question are Tether (USDT), TrueUSD (TUSD), Pax Dollar (USDP), Gemini Dollar (DUSD), Frax Protocol, and Dai (DAI).
Also, crypto exchanges such as Binance, OKX, and Kraken have modified their stablecoin listing rules.
That comes as the European market awaits MiCA stablecoin rules implementation in the Economic Area on 30 June.
Uphold delists six stablecoins to comply with MiCA
Uphold has joined the leading exchanges removing stablecoins to comply with Europe’s Markets in Crypto-Assets crypto regulatory framework.
The exchange has urged users of the mentioned stablecoins to convert them to other digital assets by 28 June, before Uphold automatically exchanges them to USDC.
“We kindly request that you convert your holdings before 23:59 CET on June 27th, 2024. If you’re too busy or forget to convert, don’t worry, we will automatically exchange your holdings into USDC on June 28th, 2014.”
Europe approved the first-of-a-kind comprehensive crypto law in April last year and is waiting to go into full force by 2024 end.
Notably, the upcoming stablecoin policy implementation (on 30 June) in the European Economic Area triggered Uphold’s decision.
Crypto exchanges are revising their assets to align with the new regulations.
MiCA’s new stablecoin rules
MiCA introduces stiffer regulatory policies on fiat-tied stablecoins and electronic-cash tokens with notable adoption.
Stablecoin issuers should ensure adequate reserved assets held by a 3rd party, while, the European Banking Authority oversees the assets.
Moreover, the MiCA framework requires stablecoin creators to acquire certificates from credit institutions or eMoney Institutions (EMIs).
Also, the new policies will ban algorithmic stablecoins. The law aims to boost consumer confidence by making stablecoins a reputable store of value.
While multiple stablecoins face uncertainty, USD Coin and euro-pegged ones will likely flourish under the updated rules.
Meanwhile, some market players believe Europe is the new United States in regulating digital assets.
Currently, the US has no comprehensive framework for regulating stablecoins, with their recent bill looking to impose more harm.
However, recent failures have confirmed the benefits of regulatory intervention in the stablecoin market.
Despite the confusion, the stablecoin industry in the US has expanded rapidly, with non-bank issuers propelling the sector to unprecedented heights.
It remains crucial to see how MiCA will shape the crypto market in the EU and whether the US can follow similar moves.
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