Tether’s USDT stablecoin is under scrutiny in the European Union as the Markets in Crypto-Assets (MiCA) regulation nears implementation on December 30, 2024. The regulation introduces stringent compliance requirements for stablecoin issuers, sparking concerns about USDT’s adherence to these standards.
Here are the key points:
- – Coinbase’s Delisting: Coinbase delisted USDT for EU customers due to compliance concerns related to MiCA.
- MiCA Requirements: Stablecoin issuers must obtain e-money licenses, hold reserves in recognized banks, and provide detailed disclosures.
- Regulatory Uncertainty: While Coinbase has delisted USDT, no EU authority has officially declared it non-compliant.
- Exchanges’ Cautious Approach: Other prominent exchanges like Binance and (link unavailable) continue to list USDT for EU users, awaiting explicit guidance from regulators.
- Tether’s Response: Tether CEO Paolo Ardoino dismissed delisting rumors, labeling them as a “poorly coordinated effort” by competitors and critics.
The outcome will have significant implications for market liquidity, trader preferences, and the broader crypto ecosystem. A potential delisting of USDT could pose challenges for the Nigerian crypto space, where USDT is widely used.
Source: Nairametrics
