Uphold Drops USDT, GUSD, TUSD Over New EU Law

Uphold, a cloud-based multi-asset trading platform, has begun notifying its customers about the suspension of support for several stablecoins, including Tether’s USDT and Gemini’s GUSD. This decision comes in response to the new European regulatory framework known as the Markets in Crypto-Assets Act (MiCA).

List of Affected Stablecoins

In an email notification shared by Antony Welfare, founder of the Commercializing Blockchain Research Centre (CBRC), Uphold announced the end of support for USDT, GUSD, DAI, FRAX, TUSD, and USDP. This change will take effect on July 1, with Uphold citing “new European Union rules on stablecoins” as the driving factor.

As of now, Uphold has not released a public statement on this matter. Crypto.news has reached out for comments and will update this article upon receiving a response.

Despite the suspension of several stablecoins, Uphold will continue to support Circle’s stablecoins, USDC and EURC, as well as Paxos-issued PYUSD for PayPal. Customers are urged to convert their holdings in the affected stablecoins by June 27. Any remaining balances will be automatically converted to USDC on June 28.

New Regulatory Framework: MiCA

MiCA, which came into force in June 2023, introduces provisions for asset-referenced tokens and e-money tokens starting from June 30. The new regulation prohibits the public offering or trading of stablecoins in the European Union unless the issuer is authorized and has an approved “white paper” by the national competent authority.

The new regulatory landscape has raised concerns among crypto executives. Tether CEO Paolo Ardoino has expressed that MiCA could complicate the operations of stablecoin issuers and increase risks for EU-licensed stablecoins.

Binance announced in early June that it would not delist unauthorized stablecoins from its spot market but would limit their availability for European Economic Area (EEA) users. The exchange plans to promote regulated stablecoins as alternatives.

Other Exchanges’ Responses

In mid-May, reports indicated that Kraken, a U.S.-headquartered crypto exchange, was considering delisting USDT. However, Kraken’s global head of asset growth & management, Mark Greenberg, later stated that the exchange is still evaluating all options to offer USDT under the new regime.

In summary, Uphold’s decision to suspend support for several stablecoins aligns with the new European regulations under MiCA. As the crypto industry navigates this new regulatory environment, exchanges and issuers continue to assess their options and adapt to ensure compliance.