Ripple Partner Uphold To Delist These Stablecoins Ahead MiCA

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As an analyst with a background in digital assets and experience following regulatory developments, I believe Uphold’s decision to delist multiple USD-backed stablecoins is a proactive measure to comply with the upcoming MiCA regulations within the European Economic Area (EEA). This shift represents a significant change in the regulatory landscape for stablecoins and marks the beginning of stricter compliance requirements.

I, serving as a financial analyst, would like to share that Uphold, a New York-based crypto exchange and Ripple On-Demand Liquidity (ODL) partner, has disclosed its intention to withdraw support for several stablecoins. The affected stablecoins are Tether (USDT), Dai (DAI), and Frax Protocol (FRAX). This decision is in response to the imminent implementation of Markets in Crypto Assets (MiCA) regulations within the European Economic Area (EEA).

Uphold Decides To Delist Various USD Stablecoins

Antony Welfare, serving as CBDC Strategist at Ripple, announced that Uphold intends to delist several stablecoins beginning July 1, 2024. Affected digital assets include Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). From that date forward, these stablecoins will no longer be available on Uphold’s platform.

As a researcher, I’d like to share some important information regarding stablecoins held by Uphold customers. To ensure compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation, Uphold has announced that any stablecoins not converted by June 27, 2024, will be automatically changed into USD Coin (USDC) on June 28, 2024. Therefore, it is advisable for customers to convert their assets before this date to avoid any potential disruptions.

Beginning on June 30, 2024, the new regulation signifies a substantial change in the regulatory framework for stablecoins within the European Economic Area (EEA). This shift is being reflected in Uphold’s actions, joining other leading exchanges such as Binance, OKX, and Kraken, who are also making adjustments to meet MiCA (Markets in Crypto-Assets) requirements.

As a crypto investor, I’ve noticed that USD-backed stablecoins have been under scrutiny in Europe lately. Consequently, there’s growing anticipation that EUR-backed stablecoins will gain traction in the European region. Nevertheless, USD stablecoins are predicted to maintain their dominant position in the global market.

Reforms By Other Exchanges

Binance has adopted a sell-only approach towards unauthorized stablecoins, while also introducing further limitations across its platform to align with new regulatory requirements. Notably, OKX recently discontinued support for USDT trading pairs in the European Union, although it continues to facilitate trading for other stablecoins like USDC and those linked to the euro.

Currently, Kraken is examining Tether’s adherence to the new European Union regulations regarding stablecoins. At this point, Kraken has not made a determination about listing USDT again, as they are still considering the consequences of MiCA. According to MiCA guidelines, stablecoin issuers functioning within the EU need to acquire licenses as Electronic Money Institutions (EMIs) or credit institutions.

As a analyst, I would rephrase it as: The introduction of this requirement brings some level of uncertainty for various existing stablecoins. On the positive side, Euro-backed stablecoins are expected to prosper under the new regulatory framework established by MiCA. By increasing the legal and operational transparency in the cryptocurrency market within the European Economic Area (EEA), MiCA’s regulations will benefit stablecoins significantly.

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2024-06-18 12:23