- Why did Uphold delist stablecoins?
- What is Markets in Crypto-Assets Regulation (MiCA)?
- When will Crypto-Assets Regulation (MiCA) implementation begin?
United States-based crypto exchange platform Uphold has made public plans to delist six stablecoins, including Tether (USDT), Dai (DAI), and Frax Protocol (FRAX). The other stablecoins are Gemini dollar (GUSD), Pax dollar (USDP) and TrueUSD (TUSD)
This was announced via a recent Uphold notice, which was shared on X by Antony Welfare, a senior advisor to CBDC Europe and Global Partnerships at Ripple.
Uphold’s notice. Credit: X/Antony Welfare
According to Uphold, the decision to delist the stablecoins is in accordance with the European Union’s Markets in Crypto-Assets Regulation (MiCA). The exchange says the stablecoins will no longer be available on its platform as of July 1, 2024, and urged users to convert their stablecoins by June 27, 2024, to prevent their automatic conversion to USDC on June 28.
What is Markets in Crypto-Assets Regulation (MiCA)?
Market in Crypto-Assets (MiCA) is a landmark framework created by the European Union to govern crypto assets in Europe.
MiCA applies to crypto assets and stablecoins the best practices found in the EU's current regulations on traditional trading securities. The European Parliament adopted the regulations to oversee the provision of crypto services and issuance of crypto assets in EU member states.
MiCA seeks to maintain financial stability, encourage innovation in the cryptocurrency space, and offer legal protection against the risks involved in holding cryptocurrency assets. Crypto service providers must apply for permission and register with member state EU financial regulators.
What businesses are affected by Markets in Crypto-Assets Regulation (MiCA)?
Service providers that deal with the issuance, trading, management, and advice of digital assets are subject to MiCA EU regulations. This covers custodial wallets, exchanges, cryptocurrency trading platforms, and EU-based advisory and management companies. It also applies to non-EU service providers and issuers of cryptocurrency assets who want to conduct business with any EU member state.
MiCA implementation timeline. Credit: ESMA
Decentralised ledger technology (DLT)-based crypto assets are precisely defined by the MiCA crypto regulations, which also make a distinction between tokens and cryptocurrencies. Three different types of crypto assets are covered by the regulatory framework: utility tokens (crypto assets that are not EMTs or ARTs), e-money tokens (EMTs), and asset-referenced tokens (ARTs).
When will Crypto-Assets Regulation (MiCA) implementation begin?
In May 2023, MiCA was passed into law but partial implementation started in June 2023. Its full implementation is expected to begin at the end of this year. However, MiCA's stablecoin regulations will take effect on June 30 in the European Economic Area (EEA).
To abide by these rules, cryptocurrency exchanges such as Uphold and others are implementing significant modifications to their market listings.
Binance had recently announced related measures to comply with MiCA. OKX and Kraken have also modified their products to comply with the new EU rules.
