Cloud-based multi-asset platform Uphold has begun notifying some of its customers about its decision to suspend support for Tether’s USDT and Gemini’s GUSD, among other stablecoins. This move is due to the European regulatory framework known as the Markets in Crypto-Assets Act (MiCA).

Uphold’s Decision to Suspend Stablecoins

According to an email notification from Uphold, the New York-headquartered firm will no longer support USDT, GUSD, DAI, FRAX, TUSD, and USDP starting from July 1. The reason cited is the new European Union rules on stablecoins.

“MiCA regulations mean not all USD stablecoins are treated equally.”

As of now, Uphold has not made any public statements on the matter. However, the company has urged 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.

Stablecoins Still Supported by Uphold

Following the suspension, Uphold will continue to support Circle’s stablecoins USDC and EURC, as well as PYUSD issued by Paxos for PayPal.

Impact of MiCA Regulations

MiCA, which entered into force in June 2023, has provisions related to asset-referenced tokens and e-money tokens that will apply from June 30. Under the new regulation, no stablecoins can be offered in the European Union to the public or admitted to trading on a trading platform for crypto-assets unless the issuer is authorized in the region and publishes an approved white paper.

The new regulatory landscape has sparked concerns among some crypto executives. Tether CEO Paolo Ardoino mentioned that MiCA could make the job of a stablecoin issuer extremely complex and make EU-licensed stablecoins vulnerable and riskier to operate.

Other Exchanges’ Responses

In early June, Binance announced that it would not delist unauthorized stablecoins from its spot market but would limit their availability to certain products for European Economic Area (EEA) users. The exchange also plans to promote regulated stablecoins as alternatives.

In mid-May, reports surfaced that Kraken was “actively reviewing” delisting plans for USDT. However, Kraken’s global head of asset growth & management business, Mark Greenberg, denied the delisting rumors, stating that the exchange is still examining all options to offer USDT under the upcoming regime.

For more updates on cryptocurrency news and regulations, keep exploring Global Crypto News.

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