@xMovingTarget :
That is possible. My impression is that Uphold does not perform compliance checks on its existing client base they had prior to the end of the transition period for the new regulation in November 2020 and that they only shut down their new-client-business in Germany.
But if Uphold should become aware of the fact that you are still their customer (e.g. you are in contact with their customer support) they will immediately close your account without any prior warning. In that case you can only sell your assets and withdraw the money to your bank account as all other functions will be blocked by Uphold. I am aware of several cases since the beginning of this year, where exactly that did happen. The reason provided for the account closures is always the same: Due to a changed regulatory environment Uphold does currently not operate in Germany anymore and they have to assess the implications of the new regulation on Upholds business and processes in place.
This vague explanation simply translates to: Uphold does not have a BAFIN license to operate as crypto custodian in the German market.
So as long as you stay quiet and do not contact Uphold’s customer support for any reason, I think they will not notice that you are still their client. And you can continue using their wallet. But be aware that Uphold can close it at any time and when that will happen, you will not be able to transfer your assets to any other wallet provider anymore.