LUCKNOW (CoinChapter.com) — Uphold, a popular cryptocurrency exchange, will delist Dogecoin (DOGE), a memecoin favored by billionaire Elon Musk. The firm will also bar its Canadian customers from trading Dogecoin’s arch-rival Shiba Inu (SHIB) and blockchain project Cardano (ADA). The sudden move comes as part of a larger “delisting spree,” wherein Uphold has removed ten cryptocurrencies that it classifies as “Tier 3” assets.
In an email to its customers, Uphold explained that the delistings are necessary for the company to comply with emerging cryptocurrency regulations in Canada.
Specifically, Uphold stated that the move aligns with a “Pre-Registration Undertaking” that the company entered into with the Ontario Securities Commission, a key step in Uphold registering as a licensed crypto exchange in the Canadian province of Ontario.
In addition to Dogecoin, Shiba Inu, and Cardano, Uphold will also delist other Tier 3 crypto assets from platforms such as XDC Network (XDC), Kaspa (KAS), Hedera (HBAR), Stellar (XLM), VeChain (VET), Injective (INJ), and Casper (CSPR). The company stated that it has already halted trading and removed order book functionality for these tokens.
Uphold is also delisting all of its Tier 4 cryptocurrencies, a higher-risk category that includes the likes of Terra Classic (LUNC) and lesser-known tokens. However, top assets Bitcoin (BTC), Ethereum (ETH), and XRP will remain listed on the platform. Uphold has had a close relationship with the company behind XRP, Ripple Labs.
30-Day Window Open for Users to Withdraw Funds
The delisted cryptocurrencies comprise a meaningful portion of many Uphold users’ portfolios. The company allows its Canadian customers 30 days to withdraw or convert affected assets before automatically liquidating remaining token balances into Canadian dollars on January 15th, 2024. Uphold emphasized that users can no longer deposit or purchase Tier 3 cryptocurrencies through its platform.
The news adds further challenges for struggling major cryptocurrencies like Dogecoin and Cardano. The removals also underscore the growing regulatory scrutiny facing cryptocurrency exchanges across leading Western nations.
Mixed Reactions to Uphold’s Delisting Decision
Uphold’s decision to delist major cryptocurrencies like Dogecoin and Cardano has elicited both understanding and criticism from industry voices. Dr. Martin Hiesboeck, Head of Research at Uphold, stated that the move aimed to keep the exchange compliant as crypto regulations evolve in Canada.
“We have to adhere to new rules up north,” Hiesboeck said.
However, pro-crypto lawyer Bill Morgan argued that the rationale seemed inconsistent given that Ethereum’s top altcoin was not facing removal.
“Why is Ethereum okay to list but not these? What is the legal basis for the distinction?” Morgan questioned.
He made clear he was not advocating for Ethereum’s removal but rather probing why it received different treatment than the axed assets.
