Tether Removed From Uphold List, Here's Why!

Uphold, recently took drastic steps by removing six stablecoins from their list. One of the affected is Tether (USDT), which is the largest stablecoin in the group. This decision was taken in response to Markets in Crypto Assets (MiCA) regulations that will take full effect on June 30, 2024 in the European Union.

According to CryptoPotato information, MiCA sets strict regulations on stablecoins supported by fiat and electronic money tokens. This regulation ensures that digital assets comply with strict safety and transparency standards. One of the main provisions is support 1:1 for fiat-based stablecoins with liquid reserves. In addition, the separation of spare asset custodies and the ban on algorithmic stablecoins is also part of this regulation.

Tether (USDT) has confirmed the fulfillment of MiCA requirements, but they have no plans to be regulated by this regulation in the medium term. The Uphold's decision to remove Tether raises questions about the future of USDT in the European Union. While MiCA aims to create a safer and more regular environment for crypto markets, its impact on stablecoins like Tether remains to be seen.

MiCA regulation can affect crypto regulation in other regions, including the US. However, provisions for stablecoins may not have the same interests. Wang, COO of Elixir, believes that stablecoin regulation will increasingly become a controversial political topic. The question is, will Tether remain dominant or will the Euro-based stablecoin take over?

With the Uphold's decision to remove Tether, USDT faces an uncertain future in the European Union. While we look forward to how MiCA will impact the crypto market, one thing is for sure: Tether's journey will still attract the attention of many parties.