Attention Bitcoin enthusiasts! Uphold, a crypto exchange based in New York, is removing six stablecoins from its platform, including the popular Tether (USDT). This decision is in response to upcoming regulations in the European Union known as MiCA, set to take full effect by June 30, 2024.

Wondering what this means for USDT's future in Europe? Tim Wang, COO of Elixir, suggests that in the short term, this could disrupt liquidity and trading markets due to the dominance of USDC and USDT on centralized exchanges.

The new EU crypto laws impose strict rules on stablecoins backed by fiat currencies and e-money tokens that exceed a certain adoption threshold. MiCA requires stablecoins to be fully backed 1:1 by liquid reserves, keep reserve assets separate from custodial accounts, and bans algorithm-based stablecoins.

Uphold isn't alone in making adjustments; other major exchanges like Kraken, Binance, and OKX are also revising their policies to comply with these regulations.

While MiCA regulations might influence crypto rules in other regions, like the US, the rules for stablecoins may not be as strict. Wang believes that the dominance of stablecoins will become a hot political topic in the future.

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