The trading platform Uphold will cease supporting several stablecoins, including Tether (USDT), GUSD, DAI, FRAX, TUSD, and USDP, starting July 1, 2024.
This decision is a response to the requirements of the "Markets in Crypto-Assets" (MiCA) regulation, which imposes stringent rules on stablecoin issuers in the EU, requiring them to be licensed as credit institutions or electronic money institutions with a 1:1 reserve ratio and asset custody by a third party. Users must convert these stablecoins by June 28, after which such stablecoins will be automatically converted to USD Coin (USDC).
MiCA, which came into force in May 2023, aims to ensure stability and consumer trust. This has prompted other exchanges, such as Binance and OKX, to adapt their policies. For example, Binance categorized stablecoins as "regulated" and "unlicensed," while OKX delisted Tether in Europe.
With the new rules, euro-backed stablecoins may benefit as they comply with MiCA standards, but this will pose challenges for other cryptocurrencies. This will change the game's rules for the cryptocurrency industry in Europe and may even strengthen the positions of regulated stablecoins in the EU market.
What do you think about exchanges excluding certain stablecoins from European operations? Share your thoughts and views on this topic in the comments.
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