Report Uphold discontinues support for USDT GUSD TUSD in response to new European legislation
Uphold, a cloud-based multi-asset platform, has started informing select customers about its choice to stop supporting Tether’s USDT and Gemini’s GUSD, among other stablecoins.
The decision to discontinue support for a variety of stablecoins is a result of the new regulatory framework in Europe known as the Markets in Crypto-Assets Act (MiCA). Uphold sent an email notification, shared by CBRC founder Antony Welfare, stating that starting from July 1, they will no longer support USDT, GUSD, DAI, FRAX, TUSD, and USDP due to the “new European Union rules on stablecoins.”
As of now, Uphold has not made any public statements regarding this matter. Crypto.news has reached out for comments and will provide updates if received.
After the suspension, Uphold will still back Circle’s stablecoins USDC and EURC, as well as PYUSD issued by Paxos for PayPal. Uphold has advised customers to convert their holdings in the affected stablecoins by June 27. Any remaining balances will be automatically converted to USDC on June 28.
MiCA came into effect in June 2023, with provisions related to asset-referenced tokens and e-money tokens becoming applicable from June 30. The new regulation prohibits offering stablecoins to the public in the European Union or trading them on a crypto-assets platform unless the issuer is authorized in the region and publishes an approved “white paper” by the national competent authority.
The implementation of these new regulations has raised concerns among some crypto industry leaders. Tether CEO Paolo Ardoino expressed worries in an interview with The Block, stating that MiCA could make the job of a stablecoin issuer complex and increase the risks associated with operating EU-licensed stablecoins.
Crypto exchange Binance announced in early June that while it wouldn’t delist unauthorized stablecoins from its spot market, it would restrict their availability for EEA users and promote regulated stablecoins as alternatives.
Reports in mid-May suggested that Kraken, a U.S.-based crypto exchange, was considering delisting USDT, a stablecoin issued by Tether. However, Kraken’s global head of asset growth & management business, Mark Greenberg, denied these rumors, stating that the exchange is exploring options to offer USDT under the upcoming regulatory regime.
For more information, ESMA is targeting MEV as potential market abuse in the MiCA proposal.
