Uphold has notified customers it will cease support for USDT, GUSD, and other stablecoins starting July 1 due to new European regulations under the Markets in Crypto-Assets Act (MiCA). The New York-based firm cited the need to comply with these rules as the reason behind the suspension.
MiCA, effective since June 2023, mandates that stablecoins cannot be publicly offered or traded in the EU unless authorized and accompanied by an approved white paper. This new regulatory framework aims to tighten control over stablecoin issuers, making compliance complex and potentially increasing operational risks.
Other exchanges like Binance and Kraken are also adjusting their policies. Binance will limit unauthorized stablecoins for EEA users but not delist them, while Kraken is still reviewing its USDT offering options.
The strategic importance lies in the broader implications for stablecoin issuers and European crypto markets, highlighting the increasing regulatory scrutiny in the sector.
