Uphold, a cloud-based multi-asset platform, has recently informed some of its customers about its decision to stop supporting certain stablecoins like Tether’s USDT and Gemini’s GUSD. This move is in response to the new regulatory framework in Europe known as the Markets in Crypto-Assets Act (MiCA).
In an email shared by Antony Welfare, founder of the Commercializing Blockchain Research Centre (CBRC), Uphold stated that it will no longer support stablecoins such as USDT, GUSD, DAI, FRAX, TUSD, and USDP starting from Jul. 1. The reason cited for this decision was the “new European Union rules on stablecoins.”
Although Uphold has not made any public statements on the matter, Crypto.news has reached out for comments and will update the article accordingly.
Following the suspension of these stablecoins, Uphold plans to continue supporting Circle’s USDC and EURC stablecoins, as well as PYUSD issued by Paxos for PayPal. Customers are advised to convert their holdings in the affected stablecoins by Jun. 27, with any remaining balances automatically converted to USDC on Jun. 28.
The introduction of MiCA in June 2023 has raised concerns within the crypto industry. Tether CEO Paolo Ardoino expressed worries about the new regulation, stating that it could make EU-licensed stablecoins more complex to operate and increase risks.
In response to the new regulatory landscape, crypto exchange Binance announced in early June that it would not delist unauthorized stablecoins but would limit their availability to certain products for European Economic Area (EEA) users. They also plan to promote regulated stablecoins as alternatives.
Reports in mid-May suggested that Kraken was considering delisting USDT, issued by Tether. However, Mark Greenberg, Kraken’s global head of asset growth & management business, denied these rumors and mentioned that the exchange is exploring options to offer USDT under the upcoming regulatory regime.
ESMA has also targeted Miner Extractable Value (MEV) as a potential market abuse in the MiCA proposal, indicating further changes in the crypto market in the coming years.