What Is the Latest Tether ($USDT) FUD? Is There a Need to Panic? Here's What
to Know.
The European cryptocurrency market is set for a seismic change as the Crypto Asset Markets Regulation (MICAr) comes into full force on December 30, 2024.
The delisting of Tether's USDT from most centralized European exchanges is among the most significant changes that have stirred fear, uncertainty, and doubt (FUD) in the market. Here's what it means for crypto users, businesses, and the future of digital assets.
MICAr stands for Markets in Crypto Assets Regulation. This comprehensive regulatory framework sets licensing requirements for cryptocurrency businesses in the European Union (EU), including "transitional rules" that facilitate compliance across EU member states.
MICAr essentially creates a transparent environment for crypto activities by requiring Know Your Customer (KYC) processes for crypto transactions and wallets. While advocates see this as a step towards legitimacy of the market, critics argue that it could stifle innovation and invade privacy. MICAr is also expected to impact global crypto regulation, with the US and other countries likely to adopt similar rules in the near future.
Tether (USDT) Delisting.
One of the most immediate impacts of MICAr is the delisting of Tether's USDT, the world's largest stablecoin by market cap. USDT will no longer be available on most centralized exchanges in Europe from December 30.
While USDC (USD Coin) has been deemed compliant and will remain in use, the loss of USDT could disrupt trading pairs and liquidity. More stablecoins could follow, potentially reducing options for users in the EU.
