Uphold is delisting six stablecoins, including USDT and DAI, to comply with MiCA, the EU's new crypto regulation. The exchange has asked users to transfer these assets before June 28 or face an immediate conversion to USDC.
The European Union's Markets in Crypto-Assets Regulation, which took effect in June 2023, strengthens controls on stablecoin operations. It requires a strong 1:1 backing of cash and algorithmic stablecoins. Uphold users must respond quickly as the platform aligns with these regulations ahead of their full application by the end of 2024.
The MiCA framework requires stablecoin issuers to hold specialized banking licenses — providing euro-backed stablecoins an advantage in Europe.
This new policy results in a considerable reshuffle. Binance divides stablecoins into compliant and non-compliant categories, while others such as OKX and Kraken review their stablecoin choices.
The restructuring signals enhanced stability and customer trust in the crypto industry. Still, it also heralds a transition for traders and platforms alike.
