- The cryptocurrency exchange Uphold will delist USDT and five other stablecoins for Europeans under MiCA.
- The South Korean regulator has mandated a review of 600 altcoins listed on licensed trading platforms in the country.
Starting July 1, the cryptocurrency exchange Uphold will cease support for stablecoins USDT, DAI, FRAX, GUSD, USDP, and TUSD for users in the European Economic Area (EEA) to comply with MiCA requirements.
#Mica #stablecoin regulations mean not all $USD stablecoins are treated equally .. interesting to see which are ok ? pic.twitter.com/4hJEL4T24n
— Antony Welfare (@AntonyWelfare) June 17, 2024
Holders of these stablecoins must convert them to other assets by June 28. Otherwise, the excluded cryptocurrencies will automatically be replaced with USDC.
The platform will also continue to support Circle’s EURC and PayPal’s PYUSD.
Under MiCA provisions, new stablecoin requirements will take effect in the EEA from June 30.
The document sets stricter standards for fiat-backed cryptocurrencies. Their issuers and operators are required to obtain a license from the EU regulator and comply with requirements to maintain coin stability.
Companies will have to fully disclose information to clients, provide a public business model, establish an effective management system, including risk management, and register with the EBA.
Earlier in the summer, Binance announced restrictions for certain stablecoins in the European Union due to MiCA’s implementation. The decision will affect so-called “unregulated stablecoins” on the platform.
According to Bloomberg, the exchange Kraken is “actively considering” the status of USDT under the new EU regulatory rules. However, exchange representatives stated there are no plans to delist the stablecoin.
In March, journalists, citing MiCA’s implementation, reported on OKX’s intention to remove USDT trading pairs for EEA clients.
South Korea’s Clean Altcoin Initiative
According to The Korea Times, South Korea’s Financial Services Commission (FSC) has notified 29 licensed cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, of the need to regularly analyze tokens listed on their platforms to assess quality.
FSC norms will affect about 600 different altcoins, which are of high interest to South Korean traders. A strict regulatory approach to delisting could negatively impact coin prices.
The new regulation will take effect in the country from June 19. The law will require exchanges to adhere to stricter asset listing review rules. Companies will be obliged to conduct listing evaluations every six months and service analysis every three months.
The regulator proposed several steps to improve market monitoring and security, such as banning the listing of tokens from compromised projects. The FSC also plans to restrict the listing of coins that have not passed security audits or have vulnerabilities.
These initiatives are being implemented under the digital asset user protection law adopted in June 2023.
The document consolidates 19 different provisions related to cryptocurrencies. It introduces the concept of “digital assets” and defines liability for offenses such as insider trading, market manipulation, and unfair trading practices.
Back in February, media suggested a potential easing of crypto regulations in South Korea following elections.
However, in January, the FSC confirmed its commitment to a rule limiting the launch of exchange-traded funds based on digital gold in the country.