HomeNewsUphold to Discontinue Multiple Stablecoins Ahead of MiCA Regulation

Uphold to Discontinue Multiple Stablecoins Ahead of MiCA Regulation

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  • Uphold will discontinue several stablecoins, including USDT, DAI, and FRAX, by July 1, 2024.
  • Binance, OKX, and Kraken are also adjusting stablecoin support to comply with MiCA.

Uphold, a New York-based cryptocurrency exchange, will no longer support the well-known stablecoins Tether (USDT), Dai (DAI), and Frax Protocol (FRAX).

According to a recent press release from Antony Welfare, a senior advisor to CBDC Europe and Global Partnerships at Ripple, this action is in preparation for the impending Markets in Crypto Assets (MiCA) regulation.

Further impacted stablecoins are TrueUSD (TUSD), Pax Dollar (USDP), and Gemini Dollar (GUSD). These assets will be removed from Uphold on July 1, 2024.

Customers of the exchange are urged to convert their stablecoin holdings by June 27, 2024, in order to be ready for this shift. This step attempts to prevent June 28’s automatic conversion to USDC.

Transition to MiCA Regulations

June 30 is when the stablecoin regulations of MiCA will go into force in the European Economic Area (EEA). This legislative turning point highlights the necessity of exchanges adhering to the new regulations and represents a major shift in the stablecoin business in the area.

After Uphold, another significant exchange disclosed similar actions to comply with MiCA. Among them are more limitations on its services and a sell-only policy for Unauthorized Stablecoins. Such changes show how widely MiCA rules affect the cryptocurrency sector.

OKX and Kraken are also modifying their offerings in response to the new EU rules. Though the exchange will still accept other stablecoins, notably USDC and euro-based pairs, OKX discontinued support for USDT trading pairs in the EU in March.

This selective backing emphasizes the strategic decisions exchanges need to make to comply with regulatory changes.

Kraken disclosed last month that it was looking at Tether’s position in light of the new EU regulations, in line with what ETHNews previously disclosed.

Currently weighing the advantages and disadvantages of maintaining USDT listed, the exchange may choose to remove it from the market according to its evaluation.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: [email protected] Phone: +49 160 92211628