Big Delist from Cryptocurrency Exchange: Those 6 Coins Will Be Affected!

Cryptocurrency exchange Uphold sent a notice to its European users informing them that the platform will discontinue six recognized stablecoins as of July 1. Crypto exchanges are delisting these stablecoins to comply with European crypto regulations called the Crypto Asset Markets (MiCA) new stablecoin framework.

Upbit announced its cryptocurrency delist decision

European Union cryptocurrency regulations are challenging crypto exchanges and stablecoin issuers. Cryptocurrency exchange Uphold announced to its European users that it will discontinue its six recognized stablecoin supplements starting July 1. The reason for this delisting is the new framework of the European Union’s Crypto Asset Markets (MiCA) regulations, which became material and partially came into force in May 2023, especially for stablecoins.

The stablecoins on which Uphold will terminate its support include Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini Dollar (GUSD), Pax Dollar (USDP) and TrueUSD (TUSD). Users who hold these stablecoins will have to convert them to a different cryptocurrency by June 28. Otherwise, the exchange will automatically convert the stablecoins in question to USD Coin (USDC).

What does MiCA mean?

Within the scope of MiCA, stablecoin regulations begin to be implemented in the European Economic Area (EEA) as of June 30. Crypto exchanges such as Uphold are making significant changes to their market listings to comply with these regulations. MiCA introduces stricter and additional regulatory rules for fiat-backed stablecoins and e-currency tokens with prestige that exceed a set of previously established criteria consisting of seven quantitative and qualitative indicators. This situation, unlike the previous practice, transfers the tokens in question to the responsibility of the European Banking Agency (EBA) rather than the national authorities of the EU member states.

The new regulations require that fiat-backed stablecoins be backed 1:1 by liquid reserves and that issuers create and manage a reserve whose assets are held under the supervision of a third party and separate from other assets. Additionally, it bans algorithmic stablecoins altogether. The purpose of these guarantees is to increase consumer confidence in cryptocurrencies by ensuring that stablecoins can be used as a reliable depository and payment method.

Importance of EMI license

Under the MiCA framework, institutions issuing stablecoins in the EU must have a credit institution or electronic money institution (EMI) licence. While the status of some stablecoins remains uncertain, it is anticipated that stablecoins backed by the euro will become more popular under new regulations.

cryptokoin.com As we reported, in addition to Uphold, other major crypto exchanges such as Binance also updated their stablecoin listing policies as part of the MiCA harmonization process earlier this month. Based on compliance with the new rules, Binance divided stablecoins into two categories: “regulated” and “unregulated”. But Binance has not decided which crypto stablecoins will now be considered “regulated”. This situation differs from Uphold’s approach. In previous months, OKX delisted Tether in Europe without citing MiCA. Kraken, on the other hand, is evaluating whether Tether will continue to support USDT.