Uphold to Delist Major Stablecoins Including USDT, DAI, and FRAX Ahead of MiCA Regulations

Antony Welfare, the CBDC Strategic Advisor at Ripple, relayed  Uphold’s announcement regarding the delisting of stablecoins. The decision extends to additional stablecoins such as Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). Starting July 1, 2024, these digital assets will no longer be available on the Uphold platform.

Uphold has advised its users to convert any holdings in the affected stablecoins by June 27th to avoid automatic conversion into USDC on June 28th. This guidance is part of the platform’s preparations for removing these stablecoins from its offerings.

Customers holding any of the specified stablecoins on Uphold are encouraged to convert their assets by June 27, 2024. If not converted by this deadline, these stablecoins will automatically be exchanged for USD Coin (USDC) on June 28, 2024.

This impending regulation represents a major change in the regulatory framework for stablecoins within the European Economic Area (EEA). With the tightening regulations on USD-backed stablecoins in Europe, EUR-backed stablecoins are poised to see increased adoption within the region. However, USD stablecoins are expected to maintain a dominant position globally.

MiCA Shakes Up Stablecoins in Europe

MiCA (Markets in Crypto Assets) regulation will notably impact stablecoins. Under the new guidelines, stablecoin issuers in the European Economic Area (EEA) must obtain licensing as Electronic Money Institutions (EMIs) or credit institutions, introducing a level of uncertainty for many stablecoin operators, while euro-backed options are likely to benefit from the new regulatory environment.

The MiCA regulations are poised to provide significant regulatory clarity for Europe, marking a major advancement in cryptocurrency oversight. While some exchanges like Uphold have chosen to delist certain stablecoins preemptively, others like Kraken are still evaluating the implications for stablecoins such as USDT on their platforms, with decisions pending on whether to continue listing them.

In a recent CCN interview with Tom Kiddle, co-founder of Palisade: a French-regulated digital asset service provider based in London, Kiddle highlighted several critical aspects of MiCA and its implications for the crypto industry. He explained MiCA provides significant benefits for crypto businesses by offering clarity, which is crucial for innovation. However, he highlighted that despite MiCA’s advantages, there are challenges, such as stringent licensing requirements and continuous reporting obligations that can be burdensome for smaller companies. Yet, these measures are necessary to protect consumers.

As MiCA’s implementation unfolds, it is expected to significantly influence the European crypto market, potentially serving as a model for other regions. A key outcome may see USDC emerging as a preferred stablecoin for secure transactions within Europe, reflecting its perceived stability and compliance readiness.