Uphold to end support for USDT, DAI, FRAX and other stablecoins ahead of MiCA

Uphold advises users to convert stablecoins before automatic USDC swap.

Uphold to end support for USDT, DAI, FRAX and other stablecoins ahead of MiCA

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New York-based crypto exchange Uphold will discontinue support for several stablecoins, such as Tether (USDT), Dai (DAI), and Frax Protocol (FRAX), in anticipation of the upcoming Markets in Crypto Assets (MiCA) regulation, according to Uphold’s recent notice shared by Antony Welfare, a senior advisor to CBDC Europe and Global Partnerships at Ripple.

The affected stablecoins also include Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). Starting July 1, 2024, these assets will no longer be available on Uphold.

The exchange has advised customers to convert their stablecoin holdings by June 27, 2024, to avoid automatic conversion to USDC on June 28.

MiCA’s stablecoin rules will take effect in the European Economic Area (EEA) on June 30, marking a significant regulatory milestone for the region’s stablecoin market.

Binance, another major exchange, recently announced similar measures to comply with MiCA, including a sell-only policy for Unauthorized Stablecoins and additional restrictions across its services.

OKX and Kraken also adjusted their offerings in response to the new EU regulations.

OKX ended support for USDT trading pairs in the EU in March. However, the exchange will continue to support other stablecoins, such as USDC and euro-based pairs.

Last month, Kraken said it was reviewing Tether’s status under the new EU rules. The exchange is actively weighing the pros and cons of keeping USDT listed and might decide to delist it based on its ongoing review.

As part of the MiCA framework, stablecoin issuers in the EU must be licensed as Electronic Money Institutions (EMIs) or credit institutions. There is uncertainty surrounding several stablecoins, but euro-backed stablecoins are expected to prosper under the new rules.

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