Crypto exchange Uphold will stop supporting USDT and DAI due to new regulatory rules in the EU

At the same time, the platform will continue to support assets from the Circle issuer

18.06.2024 - 09:00

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What’s new? New York-based crypto exchange Uphold will stop supporting several stablecoins: USDT, DAI, FRAX, GUSD, USDP, and TUSD on July 1. The company attributed such measures to the new rules regulating stablecoins in the European Union. It sent notifications to customers in the mail, one of them shared by Antony Welfare, Ripple’s global partnerships and CBDC advisor in Europe, on X-account.

Source: X.com

What else is known? At the same time, the exchange will continue to support USDC and EURC from Circle, as well as PYUSD issued by Paxos under the PayPal brand.

Uphold representatives urged users to convert their holdings of delisted stablecoins by June 27, after this date all account balances will be converted to USDC.

The changes are due to the Markets in Crypto Assets (MiCA) regulation, whose clauses regarding stablecoins will come into effect in the European Economic Area (EEA) on June 30.

Earlier, Binance also announced that it will stop supporting unauthorized stablecoins in some of its products for users in the EEA.

The OKX exchange stopped supporting USDT trading pairs in the EU back in March, while it still supports other stablecoins, including USDC.

Kraken said in May that it was reviewing the status of USDT for compliance with MiCA rules, and based on the results of the analysis may decide to delist it.

USDT issuer CEO Paolo Ardoino said MiCA “contains several problematic requirements” that could make it more difficult for stablecoin issuers to operate, as well as increase the risks of using such assets with a license.

Tether CEO says there are “problematic requirements” in the EU law on crypto regulation

Earlier, Paolo Ardoino criticized the requirement to keep reserves in bank deposits that do not have insurance

USDT is the largest centralized US dollar-pegged stablecoin. It ranks third in the overall ranking of cryptocurrencies by market capitalization with over $112,5 billion, behind only bitcoin and Ethereum.

From March 11 to June 10, USDT accounted for 69% of inflows into the stablecoin sector, totaling $16,23 billion.

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