- Converting stablecoins prior to the automatic USDC transfer is advised by Uphold.
In preparation for the impending Markets in Crypto Assets (MiCA) regulation, New York-based cryptocurrency exchange Uphold has decided to stop supporting a number of stablecoins, including Tether (USDT), Dai (DAI), and Frax Protocol (FRAX). This information was recently shared by Uphold’s senior advisor to CBDC Europe and Global Partnerships at Ripple, Antony Welfare.
Other stablecoins affected are TrueUSD (TUSD), Pax Dollar (USDP), and Gemini Dollar (GUSD). On July 1, 2024, these assets will no longer be available on Uphold.
Customers are urged by the exchange to convert their stablecoin holdings by June 27, 2024, in order to prevent the automatic conversion of their holdings to USDC on June 28.
On June 30, MiCA’s stablecoin regulations will go into force throughout the European Economic Area (EEA), representing a critical regulatory turning point for the stablecoin industry in the area.
Another major exchange, Binance, also revealed similar procedures to comply with MiCA. These measures include imposing more restrictions on all of its services and restricting the sale of unauthorized stablecoins to sales exclusively.
Additionally, Kraken and OKX altered their goods to conform to the new EU regulations.
OKX ceased to support USDT trading pairs in the EU in March. However, the exchange will continue to support other stablecoins, including USDC and euro-based pairs.
According to Kraken, Tether’s standing under the new EU regulations was being reviewed last month. The exchange is now debating whether or not to keep USDT listed, and depending on the results of this evaluation, it may choose to delist it.
Stablecoin issuers in the EU are required by the MiCA framework to hold licenses as credit institutions or as Electronic Money Institutions (EMIs). While there is ambiguity around a number of stablecoins, it is anticipated that stablecoins backed by euros will thrive under the new regulations.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
