Crypto exchange Uphold drops support for several stablecoins ahead of MiCA regulation
2 min readUphold will end support for several stablecoins ahead of the upcoming Markets in Crypto Assets Regulation (MiCA), which governs crypto in Europe. Antony Welfare, Ripple’s CBDC advisor, said on Tuesday that Uphold will no longer support stablecoins such as DAI, FRAX, GUSD, USDP, TUSD and USDT. Instead, Uphold will continue to support USDC, EURC and PYUSD, the note said.
The exchange also asked users to transfer their holdings to USDC by June 27. If they don’t, the exchange will automatically convert everything to USDC on June 28th.
Uphold and other exchanges are adapting to EU regulations for stablecoins
The MiCA Stablecoin Regulation will enter into force in the European Economic Area (EEA) on June 30. They represent an important regulatory development for the stablecoin sector in the region.
Under this framework, stablecoin issuers in the EU must obtain a license as an electronic money institution (EWI) or credit institution. Some stablecoins are still subject to uncertainty. However, euro-backed stablecoins are expected to thrive under the new regulatory framework.
Additionally, the upcoming regulation will disrupt the stablecoin market. MiCA requires fiat-backed stablecoins to have a 1:1 liquidity reserve ratio. And many industry representatives point out that these rules could benefit the crypto market in the EU.
They are also intended to increase market stability and reduce the risk of infection. These requirements include capital thresholds, transparency standards and consumer protection.
More exchanges seem to follow. Binance has restricted trading of certain stablecoins . And OKX has removed trading pairs involving USDT from Tether in line with new EU regulations.
Meanwhile, Kraken says it is working on ways to continue offering Tether (USDT) to European users.
