tl;dr
Uphold, a New York-based crypto exchange and Ripple ODL partner, is delisting multiple stablecoins, including Tether (USDT), Dai (DAI), and Frax Protocol (FRAX), in anticipation of the upcoming MiCA regulations in the European Economic Area (EEA). The delisting, effective July 1, 2024, also affects ...
Uphold, a New York-based crypto exchange and Ripple ODL partner, is set to delist multiple stablecoins in anticipation of the upcoming MiCA regulations in the European Economic Area (EEA). The stablecoins affected include Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). Customers holding these stablecoins are advised to convert their assets by June 27, 2024, or they will be automatically changed into USD Coin (USDC) on June 28, 2024. This aligns with MiCA regulations taking effect on June 30, 2024, and mirrors similar actions by other major exchanges like Binance, OKX, and Kraken.
Antony Welfare, the CBDC Strategic Advisor at Ripple, shared Uphold’s notice about the delisting, which also includes 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. 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.
The upcoming MiCA regulations are expected to benefit EUR stablecoins while introducing uncertainty for USD stablecoins in the EEA. Binance, OKX, and Kraken are also adjusting their operations to comply with MiCA requirements, with Binance implementing a sell-only policy for unauthorized stablecoins and OKX ceasing support for USDT trading pairs within the European Union. Kraken, on the other hand, is reviewing Tether’s compliance under the new EU regulations and has not yet decided on the future listing of USDT.
The MiCA framework mandates that stablecoin issuers operating in the EU must obtain licenses as Electronic Money Institutions (EMIs) or as credit institutions, introducing 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, enhancing the legal and operational transparency of the cryptocurrency market in the EEA.