Uphold, a crypto exchange headquartered in New York and a Ripple On-Demand Liquidity (ODL) partner, has announced plans to remove support for multiple stablecoins. The affected stablecoins include Tether (USDT), Dai (DAI), and Frax Protocol (FRAX). This move is in anticipation of the forthcoming Markets in Crypto Assets (MiCA) regulations set to take effect in the European Economic Area (EEA).
Uphold Decides To Delist Various USD Stablecoins
Antony Welfare, who is the CBDC Strategic Advisor at Ripple, shared Uphold’s notice about the delisting. Additional stablecoins affected by this decision include Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). Effective July 1, 2024, these digital assets will no longer be accessible on the Uphold platform.
Hence, customers holding any of these stablecoins are advised to convert their assets by June 27, 2024. If not converted by this date, the stablecoins will automatically be changed into USD Coin (USDC) on June 28, 2024. This proactive measure by Ripple partner Uphold aligns with the MiCA regulation.
The upcoming regulation marks a significant shift in the regulatory landscape for stablecoins within the EEA, taking effect on June 30, 2024. Moreover, Uphold’s decision mirrors similar actions taken by other major exchanges like Binance, OKX, and Kraken. These crypto exchanges are currently adjusting their operations to comply with MiCA requirements.
Furthermore, as USD-backed stablecoins are facing heat in Europe, the EUR stablecoins are expected to flourish. The adoption of EUR stablecoins might increase in the European region. However, USD stablecoins are anticipated to dominate the global share.
Also Read: Ripple CEO Hints At Massive Pro-Crypto Funding In US Presidential Election
Reforms By Other Exchanges
Binance, for example, has implemented a sell-only policy for unauthorized stablecoins. In addition, the exchange has imposed additional restrictions across its services to meet the new regulatory standards. Earlier this year, OKX ceased support for USDT trading pairs within the European Union but continues to offer trading for other stablecoins such as USDC and pairs based on the euro.
Meanwhile, Kraken is in the process of reviewing Tether’s compliance under the new EU regulations. The exchange has not yet decided on the future listing of USDT, as it is still assessing the potential implications of MiCA. The MiCA framework mandates that stablecoin issuers operating in the EU must obtain licenses as Electronic Money Institutions (EMIs) or as credit institutions.
This requirement has introduced a degree of uncertainty for several stablecoins currently in use. However, stablecoins backed by the euro are anticipated to benefit and thrive under the new regulatory environment. MiCA’s stablecoin regulations are poised to enhance the legal and operational transparency of the cryptocurrency market in the EEA.
Also Read: Tether Launches First Gold-Backed Over Collateralized Asset
This news is republished from another source.
