Antony Welfare, a CBDC Advisor at Ripple, recently discussed the impact of MiCA regulations on stablecoins like USDT in light of the delistings by Uphold, a pro-XRP exchange.
Welfare sparked a conversation on social media about how the new MiCA regulations treat USD stablecoins differently. His post, which highlighted the discrepancies in the treatment of stablecoins, has attracted attention amidst significant delistings and regulatory changes in the stablecoin market.
He raised questions about which stablecoins would be able to meet the compliance requirements set by MiCA regulations. This discussion came in response to an announcement made by Uphold.
Uphold declared that starting from July 1, 2024, it will no longer support several stablecoins, including USDT, FRAX, TUSD, DAI, GUSD, FRAX, and USDP due to MiCA regulations. Users have been advised to convert their holdings by June 27, 2024, as any remaining assets after this date will be automatically converted to USDC.
Despite these changes, Uphold will continue to support USDC, EURC, and PYUSD moving forward. Similarly, Binance, the world’s largest crypto exchange, has also reviewed its stablecoin offerings to comply with MiCA regulations. While Binance did not initiate a delisting process, it restricted access to “unauthorized stablecoins” for EEA users.
Paolo Ardoino, the CEO of Tether, expressed concerns about the potential complexities and increased risks that MiCA regulations could bring to stablecoin issuers. He suggested that adjustments may be necessary to adhere to these regulatory constraints.
Following Welfare’s post, the crypto community raised questions about the timing of these regulatory changes, connecting them to recent allegations against Tether and the launch of a gold-backed stablecoin called Alloy by Tether. Some speculated on whether these moves were strategic or indicative of fraudulent activities by Tether.
In addition to these challenges, Tether is facing accusations of corruption and criminal activities, prompting calls for transparency and independent audits. A campaign targeting Tether’s alleged illicit activities has gained traction, with digital billboards in Times Square and other advertisements adding to the scrutiny on the company.
MiCA regulations, which cover utility tokens and stablecoins, are part of the European Union’s initiative to establish a comprehensive framework for digital assets. Reports from the Banque de France suggest that MiCA will play a vital role in digitizing the economy and tokenizing finance. There are also speculations about XRP falling under MiCA’s jurisdiction, although this has not been confirmed.
It is important to note that the information provided in this article is for informational purposes only and should not be considered financial advice. The opinions expressed are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions, as The Crypto Basic holds no responsibility for any financial losses incurred.