Uphold has notified its European users that it will cease support for six stablecoins—Tether (USDT), Dai (DAI), Frax (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP), and TrueUSD (TUSD)—effective July 1.
This move aligns with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which enforces stricter rules on fiat-backed and algorithmic stablecoins. Users must convert these stablecoins to another cryptocurrency by June 28, after which they will be automatically converted to USD Coin (USDC).
MiCA, enacted in May 2023, introduces stringent requirements for stablecoin issuers, including a 1:1 reserve ratio and third-party custody of assets. The regulations, aimed at ensuring stability and consumer confidence, will be fully implemented by the end of 2024.
Other exchanges, such as Binance and OKX, have also adjusted their stablecoin policies in response to MiCA. Binance, for instance, categorised its stablecoins into “regulated” and “unauthorized” groups, though it has not yet finalised the specifics.
MiCA mandates that stablecoin issuers in the EU obtain licenses as credit or Electronic Money Institutions. Despite the challenges, euro-backed stablecoins might benefit from these new regulations.
