As the European Union’s July 1 deadline for Markets in Crypto-Assets (MiCA) regulation approaches, different exchanges are ensuring compliance. In line with this, Uphold, a digital money platform has announced that it will cease supporting certain digital assets starting July 1, 2024, in response to new regulations on stablecoins.
Stablecoins Affected by Uphold’s Delisting
Antony Welfare, a renowned crypto leader, shared his thoughts on the development, stating that the regulations indicate not all USD-pegged stablecoins are treated equally. He added that it will be interesting to observe which stablecoins remain compliant under the new rules.
#Mica #stablecoin regulations mean not all $USD stablecoins are treated equally .. interesting to see which are ok 👍 pic.twitter.com/4hJEL4T24n
— Antony Welfare (@AntonyWelfare) June 17, 2024
The stablecoins affected by this decision include DAI, FRAX, GUSD, USDP, TUSD, and USDT. This move aims to ensure compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation, which imposes stricter rules on the operation of stablecoins within the region.
Uphold is not alone in the decision to comply and delist. Earlier this month, Crypto-Vanguard reported on Binance’s move to crackdown on unregulated stablecoins from its EU entities in order to comply with MiCA.
Binance was however silent on the specific stablecoins.
Uphold to Continuing Supporting Select Stablecoins Under MiCA
Uphold clarified that although it plans to delist the named stablecoins, it will continue to support USDC, EURC, and PYUSD. These stablecoins meet the regulatory requirements set forth by MiCA, which allows Uphold to maintain their support.
According to the Uphold update, users have until 11:59 PM CET on June 27, 2024, to convert their holdings in the affected stablecoins to supported assets. Users who do not convert their holdings by the deadline will have their assets automatically converted to USDC by Uphold on June 28, 2024.
Some members of the crypto community have welcomed the European Union MiCA requirements, seeing it as a much-needed move to maintain sanity in the ecosystem. Meanwhile, two United States legislators have also sponsored a stablecoin regulation bill that could phase out the likes of Tether.
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