Uphold Ends Support for USDT, GUSD, TUSD Due to New European Law: Report

Cloud-based multi-asset platform Uphold has begun notifying some of its customers of its decision to discontinue support for Tether’s USDT and Gemini’s GUSD, among other stablecoins.

Multi-asset trading platform Support support for a basket of will cease stablecoins due to the new European regulatory framework known as the Markets in Crypto-Assets Act (MiCA).

According to an email notification from Uphold shared in an X-post by Commercializing Blockchain Research Center (CBRC) founder Antony Welfare, the New York-based company will no longer support USDT, GUSD, DAI, FRAX, TUSD and USDP starting from July 1st. , referring to “the European Union’s new rules on stablecoins” as the reason behind the move.

As of press time, Uphold has made no public statements on the matter. Crypto.news has reached out for comments and we will update the article if we receive a response.

After suspension, Uphold will continue to support CircleUSDC and EURC, as well as PYUSD issued by Paxos For PayPal. The company urged customers to convert their holdings into the affected stablecoins by June 27. Any remaining balances in these stablecoins will automatically convert to USDC on June 28, Uphold added.

“Extremely vulnerable” regulation.

MiCA came into force in June 2023, although the provisions relating to asset-referenced tokens and e-money tokens will apply from 30 June. new regulationno stablecoin may be offered to the public in the European Union or “admitted to trading on a crypto-asset trading platform”, unless the issuer is authorized in the region and publishes a “white paper” approved by the national authority qualified.

The new regulatory landscape has sparked concerns among some crypto industry executives. Tether CEO Paolo Ardoino, in an interview with The Block, She said that MiCA “could not only make the job of a stablecoin issuer extremely complex, but also make EU-licensed stablecoins extremely vulnerable and riskier to operate.”

Binance cryptocurrency exchange She said in early June that, while it would not remove unauthorized stablecoins from its spot market, it would limit its availability to certain products for European Economic Area (EEA) users and promote regulated stablecoins as alternatives.

In mid-May, relationships It emerged that Kraken, a US-based cryptocurrency exchange, was also “actively reviewing” delisting plans for USDT, a stablecoin issued by Tether. Next up, Mark Greenberg, global head of growth and asset management at Kraken denied delisting rumors, according to which the exchange is still examining “all options to offer USDT under the next regime.”

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