Uphold ceases support for USDT, GUSD, TUSD due to European new law: report

Cloud-based multi-asset platform Uphold has begun notifying some of its customers about its decision to suspend support for Tether’s USDT, and Gemini’s GUSD among other stablecoins.

Multi-asset trading platform Uphold will cease support for a basket of stablecoins due to the European new regulatory framework known as the Markets in Crypto-Assets Act (MiCA).

According to an Uphold email notification shared in an X post by Commercializing Blockchain Research Centre (CBRC) founder Antony Welfare, the New York-headquartered firm will no longer support USDT, GUSD, DAI, FRAX, TUSD, and USDP starting from Jul. 1, referring to “new European Union rules on stablecoins” as the reason behind the move.

As of press time, Uphold made no public statements on the matter. Crypto.news reached out for comments and we will update the article if we hear back.

Following the suspension, Uphold will continue to support Circle‘s stablecoins USDC and EURC, as well as PYUSD issued by Paxos for PayPal. The company urged customers to convert their holdings in the affected stablecoins by Jun. 27. Any remaining balances in these stablecoins will be automatically converted to USDC on Jun. 28, Uphold added.

‘Extremely vulnerable’ regulation

MiCA entered into force in June 2023, though the provisions related to the asset-referenced tokens and e-money tokens will apply from Jun. 30. Under the new regulation, no stablecoins can be offered in the European Union to the public or “admitted to trading on a trading platform for crypto-assets,” unless the issuer is authorized in the region and publishes a “white paper” approved by the national competent authority.

The new regulatory landscape has sparked concerns among some crypto executives. Tether CEO Paolo Ardoino, in an interview with The Block, said that MiCA “could not only render the job of a stablecoin issuer extremely complex but also make EU-licensed stablecoins extremely vulnerable and riskier to operate.”

Crypto exchange Binance said in early June that while it wouldn’t delist unauthorized stablecoins from its spot market, it would limit their availability to certain products for European Economic Area (EEA) users and promote regulated stablecoins as alternatives.

In mid-May, reports surfaced saying Kraken, a U.S.-headquartered crypto exchange, was also “actively reviewing” delisting plans for USDT, a stablecoin issued by Tether. Later on, Kraken’s global head of asset growth & management business Mark Greenberg denied the delisting rumors, saying the exchange is still examining “all options to offer USDT under the upcoming regime.”