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Leading cryptocurrency exchanges authorized to function in Europe are revising their stablecoin listing strategies as they prepare for the comprehensive regulatory obligations for stablecoin issuers outlined in Europe’s MiCA legislation.
The crypto exchange Uphold has informed its European users that it will discontinue support for six widely used stablecoins starting July 1 this year. This choice was made in response to the stipulations of the new EU law.
Specifically, the exchange has opted to cease support for the following stablecoins:
- Tether (USDT);
- TrueUSD (TUSD);
- Dai (DAI);
- Frax (FRAX);
- Gemini Dollar (GUSD);
- Pax Dollar (USDP).
However, Uphold users will still have access to Circle’s USDC and PayPal’s PYUSD, in addition to the euro-pegged stablecoin EURS. Users who received this notification must transfer their assets from the exchange’s accounts by June 27. Any stablecoins from the aforementioned list that remain in users’ accounts will be automatically converted to USDC on June 28.
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Other prominent crypto exchanges are also taking measures to comply with the new regulatory framework. For instance, Binance has not delisted assets but has categorized them into “Regulated Stablecoins” and “Unauthorized Stablecoins.” The assets classified as unauthorized will be accessible to users in Europe only in a “sell-only” mode. Spot trading for these assets will continue to be available on the platform for now, as will the storage of “Unauthorized Stablecoins” in the exchange’s accounts. Nonetheless, Binance representatives have indicated that changes may be forthcoming.
In March, the crypto exchange OKX alerted its users that it would cease support for USDT trading pairs in Europe, citing EU regulatory requirements. Concurrently, it was reported that Kraken intended to stop supporting USDT on its European platforms. However, Mark Greenberg, Global Head of Asset Growth & Management at Kraken, refuted these claims, stating that the company is assessing the potential for supporting Tether’s stablecoin in the region once the MiCA legislation is enacted.
The MiCA legislation was ratified by members of the European Parliament in 2023. The new regulatory provisions for stablecoins are set to take effect in the European Economic Area on June 30. Consequently, crypto exchanges are hurrying to ensure their platforms comply with the new EU regulations.
The updated EU regulations mandate that stablecoin issuers adhere to stringent criteria. Specifically, their assets must be entirely collateralized, and the issuing entity must possess a European license to operate as a credit institution or an Electronic Money Institution (EMI) service provider. Furthermore, the use of algorithmic stablecoins is entirely banned within the EU under MiCA.
Additionally, the European Banking Authority (EBA) has recently introduced new requirements for asset-referenced token (ART) and electronic money token (EMT) issuers.
Сообщение Crypto Exchanges in EU Review Stablecoins’ Availability Under MiCA появились сначала на CoinsPaid Media.
