Uphold to delist six stablecoins ahead of MiCA regulations
Uphold to delist six stablecoins ahead of MiCA regulations
In a significant step reflecting the evolving regulatory landscape, crypto exchange Uphold has announced plans to delist six stablecoins, including Tether (USDT), Dai, Frax Protocol (FRAX), Gemini dollar (GUSD), Pax dollar (USDP), and TrueUSD (TUSD) by July 1, 2024.
This decision aligns with the forthcoming Markets in Crypto Assets (MiCA) regulations set to be implemented across the European Economic Area (EEA) on June 30, 2024.
Uphold, a key player in the crypto market and a Ripple On-Demand Liquidity (ODL) partner, is proactively adjusting its offerings to comply with MiCA, according to Cointelegraph.
The new regulations mandate that stablecoin issuers must obtain licenses as Electronic Money Institutions (EMIs) or credit institutions to operate within the EEA. This shift aims to enhance transparency and stability within the cryptocurrency market. These details are shared by Antony Welfare, Ripple’s CBDC Strategic Advisor.
Clients holding these stablecoins are advised to convert their assets by June 27, 2024. Any remaining holdings will be automatically converted to USD Coin (USDC) on June 28, 2024.
The move by Uphold is part of a broader trend among major exchanges to comply with MiCA. Other exchanges, including Binance, OKX, and Kraken, have also made adjustments. For instance, Binance has implemented a sell-only policy for unauthorized stablecoins and OKX has ceased support for USDT trading pairs in the European Union.
MiCA regulations are expected to significantly impact the crypto market. While USD-backed stablecoins face increased scrutiny in Europe, EUR-backed stablecoins may see a rise in adoption.
This regulatory framework aims to provide greater legal and operational clarity, potentially fostering a more secure and transparent crypto environment in the EEA.
See also: Gemini selected as custodian for two major crypto ETFs in North America
