Uphold, a cloud-based multi-asset platform, has started informing certain customers about its decision to suspend support for several stablecoins, including Tether’s USDT and Gemini’s GUSD. This move comes in response to the new regulatory framework in Europe known as the Markets in Crypto-Assets Act (MiCA).
In an email notification shared by Antony Welfare, founder of the Commercializing Blockchain Research Centre (CBRC), Uphold stated that starting from July 1, it will no longer support USDT, GUSD, DAI, FRAX, TUSD, and USDP. The decision is attributed to the “new European Union rules on stablecoins.”
As of the time of publication, Uphold has not issued any public statements regarding the suspension of support for certain stablecoins. Crypto.news has reached out to Uphold for comments and will update the article accordingly upon receiving a response.
Following the suspension, Uphold plans to maintain support for Circle’s stablecoins USDC and EURC, as well as PYUSD issued by Paxos for PayPal. Uphold has advised its customers to convert their holdings in the affected stablecoins by June 27. Any remaining balances in these stablecoins will be automatically converted to USDC on June 28, according to Uphold’s announcement.
‘Regulation in a State of Vulnerability’
MiCA, which came into effect in June 2023, includes provisions that specifically impact asset-referenced tokens and e-money tokens starting from June 30. According to the new regulation, stablecoins cannot be offered to the public in the European Union or traded on crypto-asset trading platforms unless the issuer is authorized within the region and publishes an approved “white paper” by the national competent authority.
The recent regulatory changes have raised alarms among certain cryptocurrency executives. According to Tether CEO Paolo Ardoino, speaking to The Block, MiCA could not only complicate the role of stablecoin issuers significantly but also increase the vulnerability and risk associated with operating EU-licensed stablecoins.
In early June, Binance announced that it would not remove unauthorized stablecoins from its spot market but would restrict their availability to specific products for users in the European Economic Area (EEA). Instead, the exchange plans to promote regulated stablecoins as viable alternatives.
Earlier in mid-May, reports indicated that Kraken, a U.S.-based crypto exchange, was considering delisting USDT, a stablecoin issued by Tether. However, Mark Greenberg, Kraken’s global head of asset growth & management business, later clarified that the exchange is still evaluating various options and intends to offer USDT under the upcoming regulatory framework.
