The European Union’s Markets in Crypto-Assets Regulation (MiCA), set to take effect on December 30, introduces strict compliance standards for stablecoins. This regulatory shift has sparked questions about the future of Tether’s USDT in the European market.
The new rules place significant operational demands on stablecoin issuers, leaving USDT’s compliance status unclear. Amid this ambiguity, concerns have been amplified on crypto Twitter, with speculation regarding Tether’s ability to adapt and remain stable under the evolving regulatory landscape.
In anticipation of MiCA, Coinbase has already removed USDT from its platform, while major exchanges like Binance and Crypto.com continue to list the token, opting to wait for more definitive guidance.
“No regulator has explicitly declared USDT as non-compliant, but this doesn’t guarantee its compliance either,” said Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s Technical Committee, in an interview with Cointelegraph. He noted the uncertainty over whether all exchanges will take a unified approach to delisting USDT or if some will hold off until more clarity is provided.
Tether CEO Paolo Ardoino weighed in on the ongoing discussions, dismissing what he described as a “coordinated FUD campaign” against the company. He remarked on social media that such negativity often signals bullish trends for the broader crypto market.
Under MiCA, stablecoin issuers are required to secure e-money licenses and hold up to two-thirds of their reserves in independent banking institutions. While competitors like Circle have already met these requirements, Tether has yet to do so.
In a Bloomberg report, Pascal St-Jean, CEO of crypto asset manager 3iQ Corp., underscored USDT’s importance, emphasizing that a large portion of crypto trading relies on Tether as a key pairing asset. He also warned that shifting to alternative stablecoins or fiat currencies could introduce inefficiencies for investors.
The regulatory changes could lead to the delisting of USDT on several European exchanges, prompting traders to pivot toward alternatives like USDC or EUR fiat. As MiCA reshapes the regulatory landscape, the future of Tether in the European market remains uncertain.
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