Uphold to remove USDT and 5 other stablecoins from listing by July 1 citing MiCA

Uphold, a cryptocurrency exchange, has notified its European users that it will no longer support six popular stablecoins starting from July 1. This decision is in accordance with the Markets in Crypto-Assets Regulation (MiCA) of the European Union.
The stablecoins being delisted are Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini dollar (GUSD), Pax dollar (USDP), and TrueUSD (TUSD). Users holding these stablecoins are required to convert them to a different cryptocurrency by June 28. After this date, Uphold will automatically convert them into USD Coin (USDC).
MiCA, which became law in May 2023 and began to take effect in June 2023, is set to be fully enforced by the end of 2024.
Under MiCA’s new stablecoin framework, regulations for stablecoins will come into effect in the European Economic Area on June 30. Uphold and other crypto exchanges are adjusting their market listings to comply with these regulations.
MiCA imposes stricter regulatory requirements on fiat-backed stablecoins and e-money tokens that have reached a certain adoption threshold. The European Banking Authority will oversee these tokens instead of individual EU member state authorities. The regulations mandate that stablecoins be backed 1:1 by liquid reserves and issuers must maintain a reserve of assets held by a third party separate from other assets. Algorithmic stablecoins are prohibited under these rules to enhance consumer trust in digital currencies for storing value and making payments reliably.
Stablecoin issuers in the EU must obtain licenses as credit institutions or Electronic Money Institutions under the MiCA framework. Stablecoins backed by the euro may benefit from these new regulations.
In June, major crypto exchanges such as Binance adjusted their stablecoin listing policies to comply with MiCA regulations. Binance categorized stablecoins as “regulated” or “unauthorized” based on the new rules. However, Binance has not yet determined which stablecoins fall into each category. OKX delisted Tether in Europe in March without referencing MiCA, while Kraken is evaluating whether to continue supporting USDT in the region.
Meanwhile, DeFi bots are boosting the volume of Solana’s stablecoin in the crypto market.