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Cryptocurrency exchange Uphold has informed its European users that it will delist six renowned stablecoins starting July 1. This move comes as part of Uphold’s efforts to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA).&nbsp;
Notably, the delisted stablecoins are Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini dollar (GUSD), Pax dollar (USDP), and TrueUSD (TUSD).
<h2 id="span-style-font-weight-400-mica-s-stablecoin-regulation-span">MiCA’s Stablecoin Regulation</h2>
<a href="https://thecoinrise.com/mica-scales-another-hurdle-as-parliament-votes-in-support/" rel="noopener noreferrer nofollow">MiCA</a>, passed into law in May 2023, represents a comprehensive regulatory framework for digital assets within the European Economic Area (EEA). The regulation, which partially took effect in June 2023, is set to be fully implemented by the end of this year.
Starting June 30, 2024, MiCA’s stablecoin regulations will come into force. These regulations impose stringent requirements on fiat-backed stablecoins and e-money tokens, especially those that have reached significant adoption levels.
MiCA mandates a 1:1 backing ratio of liquid reserves for fiat-backed stablecoins, with reserves held in custody by a third party, segregated from other assets. Additionally, algorithmic stablecoins are explicitly prohibited under MiCA.
The European Banking Authority (EBA) will oversee the regulation of these tokens, taking over from national authorities. This shift aims to standardize the regulatory approach across the EU and ensure a high level of consumer protection. Stablecoin issuers within the EU are now required to hold licenses as credit institutions or Electronic Money Institutions under the MiCA framework.
<h3 id="span-style-font-weight-400-impact-on-uphold-users-span">Impact on Uphold Users</h3>
Uphold has <a href="https://cointelegraph.com/news/uphold-delist-6-stablecoins-by-july-1-citing-mi-ca" rel="noopener noreferrer nofollow">advised</a> users holding any of the affected stablecoins to convert them to other cryptocurrencies by June 28. The exchange will automatically convert remaining balances in these stablecoins into USD Coin (USDC) after this date. This proactive measure aims to reduce impact for its users.
<h2 id="span-style-font-weight-400-other-exchanges-reactions-span">Other Exchanges’ Reactions</h2>
Uphold is not alone in its response to MiCA. There is a broader trend among crypto exchanges to adapt their policies to the evolving regulatory environment in Europe.
For instance, Binance has also <a href="https://www.binance.com/en/blog/regulation/mica-stablecoin-rules-what-they-mean-and-how-binance-is-complying-346008117703109809?lang=en" rel="noopener noreferrer nofollow">adjusted</a> its stablecoin listings to align with the new regulations. It has categorized its stablecoins into “regulated” and “unauthorized” groups. However, it has yet to finalize which stablecoins fall into each category. Similarly, <a href="https://thecoinrise.com/okx-discontinues-the-support-for-usdt-trading-pairs-in-europe/" rel="noopener noreferrer nofollow">OKX delisted Tether</a> in Europe in March this year without specifically citing MiCA, while <a href="https://thecoinrise.com/kraken-firm-on-keeping-usdt-in-europe-amid-regulatory-uncertainty/" rel="noopener noreferrer nofollow">Kraken is currently reviewing</a> its support for USDT in the region.&nbsp;
As the full implementation of MiCA approaches, both exchanges and stablecoin issuers will need to navigate the fresh regulatory landscape to ensure continued operation within the European market.
The post <a href="https://thecoinrise.com/uphold-to-delist-six-stablecoins-in-compliance-with-eus-mica-regulations/" rel="noopener noreferrer nofollow">Uphold to Delist Six Stablecoins in Compliance with EU’s MiCA Regulations</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Uphold to Delist Six Stablecoins in Compliance with EU’s MiCA Regulations

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