Unhold ends support for six stablecoins

The exchange sent out a notice to its European users with a recommendation to convert the specified stablecoins into another cryptocurrency by June 28, 2024. After this date, the platform will automatically convert balances to USDC to minimize inconvenience for its customers.

The main reason for deprecating these stablecoins is the need to comply with the new European Union Markets in Cryptocurrency Assets (MiCA) legislation. These requirements were adopted in May 2023 and are expected to be fully in effect by the end of 2024. However, from the end of June, MiCA rules regarding stablecoins will come into force, which impose stricter requirements on issuers.

Under the new MiCA rules, stablecoin issuers must create reserves that will be held by a third party. These measures are aimed at increasing consumer confidence in digital assets and ensuring that stablecoins can be used as a store of value and payment.

Uphold users holding listed stablecoins must take conversion action before the deadline to avoid automatic conversion. This decision affects a significant number of customers, so the exchange notified users in advance of the upcoming changes.

Uphold is not the only exchange taking such measures. Previously, the OKX crypto exchange also delisted USDT from the list of supported stablecoins, although this delisting was not directly related to the new European rules. This indicates a general trend in the industry towards stricter requirements and higher standards to ensure the safety and security of financial transactions.

The delisting of six popular stablecoins on Uphold is a response to new European regulatory requirements. This decision underscores the importance of compliance with regulatory standards to ensure user trust and the stability of cryptocurrency markets. Users must monitor changes closely and adapt promptly to continue to use digital assets safely and effectively.