Uphold crypto exchange terminated its support for top 6 stablecoins ahead of MiCA rules impact.
Uphold is a versatile cryptocurrency exchange founded in 2014, offering a user-friendly platform for buying, selling, and holding a wide range of digital assets and traditional investments. Known for transparency, security, and ease of use, Uphold integrates seamlessly with fiat currencies and emphasises accessibility for both new and experienced investors.
On 18 June 2024, Uphold announced it would stop supporting several stablecoins, including Tether (USDT), Dai (DAI), and Frax Protocol (FRAX), due to the upcoming Markets in Crypto Assets (MiCA) regulation. The stablecoins affected also include the Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD). This new decision will come into effect from 1 July 2024.
The Uphold team urged customers to swap their mentioned stablecoins to USDC or other tradable crypto assets, otherwise the exchange will automatically swap stablecoin funds to Circle ($USDC) stablecoin.
Antony Welfare, a senior advisor to CBDC Europe and Global Partnerships at Ripple, shared this information with his followers and confirmed that not all stablecoins will lose support.
It is worth it to note that already other big crypto exchanges for example Binance, Kraken, etc decided to terminate support for Tether (USDT) & other similar stablecoins because of MiCA rules.
Now it will be interesting to see the future decisions by other crypto exchanges that have significant exposure to the European Union (EU) crypto market, as such decisions may badly impact the dominance of Tether stablecoin.
One month ago, the Kraken crypto exchange reportedly decided to delist the USDT stablecoin but later Kraken officials responded to such a report confirming that MiCA might impact stablecoins.
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