Crypto Exchange Uphold Ceases Support for Multiple Stablecoins Ahead of MiCA Regulations

Uphold will cease support for several stablecoins ahead of the upcoming Markets in Crypto-Assets (MiCA) regulation governing crypto in Europe.

Antony Welfare, a CBDC advisor at Ripple, shared a notice Tuesday showing Uphold will no longer support stablecoins like DAI, FRAX, GUSD, USDP, TUSD, and USDT. Instead, Uphold will continue to support USDC, EURC, and PYUSD, according to the notice.

Further, the exchange urged users to convert their holdings to USDC by June 27th. If they don’t take action, the exchange will automatically convert everything to USDC on June 28th.

Uphold didn’t return Cryptonews’ request for comment by press time.

#Mica #stablecoin regulations mean not all $USD stablecoins are treated equally .. interesting to see which are ok 👍 pic.twitter.com/4hJEL4T24n

— Antony Welfare (@AntonyWelfare) June 17, 2024

Uphold, Other Exchanges Adapt to EU’s Stablecoin Regulations

MiCA’s stablecoin regulations will come into force in the European Economic Area (EEA) on June 30. It represents a major regulatory development for the region’s stablecoin sector.

Under this framework, stablecoin issuers within the EU must obtain licenses as Electronic Money Institutions (EMIs) or credit institutions. There remains uncertainty surrounding certain stablecoins. But the euro-backed ones are anticipated to thrive under the new regulatory framework.

Further, the upcoming regulations are set to disrupt the stablecoin market. MiCA mandates fiat-backed stablecoins to maintain a 1:1 ratio with a liquid reserve. And many industry stakeholders emphasize that these rules could benefit the crypto market within the EU.

Also, they are designed to enhance market stability and mitigate contagion risks. These requirements include capital thresholds, transparency norms, and protections for consumers.

Other exchanges appear to be falling in line. Binance limited trading in certain stablecoins. And OKX delisted trading pairs involving Tether’s USDT, in line with the new EU rules.

Meanwhile, Kraken says it’s working on ways to keep offering Tether (USDT) to European users.