Uphold, a crypto exchange based in New York and a Ripple On-Demand Liquidity (ODL) partner, has announced plans to delist several stablecoins. The affected stablecoins include Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP) and TrueUSD (TUSD). This decision is a response to the forthcoming Markets in Crypto Assets (MiCA) regulations set to take effect in the European Economic Area (EEA).
Ripple’s CBDC Strategic Advisor Announces the Stablecoin Delisting
Antony Welfare, the CBDC Strategic Advisor at Ripple, shared the announcement about Uphold’s delisting plans. According to the notice, the delisting of these stablecoins will be effective from July 1, 2024. 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 converted into USD Coin (USDC) on June 28, 2024. This measure ensures compliance with the MiCA regulation and provides customers with a clear timeline to manage their assets accordingly.
Uphold’s Move Aligns with MiCA Stablecoins Regulation
The upcoming MiCA regulation represents a significant shift in the regulatory landscape for stablecoins within the EEA. Effective from June 30, 2024, MiCA aims to provide a comprehensive framework for the issuance and operation of stablecoins, ensuring greater transparency and stability in the market. Uphold’s decision to delist these stablecoins is a proactive measure to align with MiCA’s requirements. The regulation mandates that stablecoin issuers in the EU must obtain licenses as Electronic Money Institutions (EMIs) or as credit institutions, introducing a higher level of scrutiny and compliance.
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Uphold’s decision is part of a broader trend among major crypto exchanges adjusting their operations to comply with MiCA. For instance, Binance has implemented a sell-only policy for unauthorized stablecoins and imposed additional restrictions 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 euro-based pairs. Kraken is currently reviewing Tether’s compliance under the new EU regulations and has not yet decided on the future listing of USDT, as it assesses the potential implications of MiCA.
