The stablecoin issuer Tether has just announced it will cease the issuance of the EURT token – the #stablecoin backed by the euro, due to facing legal challenges in the European market.
Token Redemption Deadline Until 2025
• EURT will not be issued further, and current users can redeem this token until November 25, 2025.
• The trading volume of #Eurt is currently very small, just over 2 million USD per day, compared to USDT – the world's most popular stablecoin with a trading volume of up to 83.7 billion USD per day.
Reason for Decision
Tether stated that this decision aligns with the company's strategic direction amid increasingly stringent regulatory frameworks in Europe.
• The MiCA (Markets in Crypto Assets) law of the European Union, enacted in 2023, focuses heavily on regulating the stablecoin industry, putting significant pressure on cryptocurrency companies.
• Tether's CEO, Paolo Ardoino, stated that this decision "was not made lightly" but will help Tether focus on Hadron, the platform for tokenizing digital and physical assets in the region.
Future Direction of Tether
• Supporting initiatives in line with European regulations: Tether is backing the Dutch company Quantoz Payments – the issuer of a stablecoin that complies with new legal standards.
• Tether continues to focus on USDT, the USD-pegged stablecoin – the flagship product traded on many major blockchain networks such as $ETH , $SOL , TRX, and $POL
Challenges from Legal and Public Opinion
Tether and stablecoins, in general, have long been the target of criticism from some politicians and regulators for being frequently exploited by criminals.
Conclusion
The cessation of EURT issuance marks a strategic shift for Tether amid tightening regulations in the European cryptocurrency industry. This move not only demonstrates the company's flexible adaptation but also serves as a stepping stone to focus on initiatives more aligned with the global legal context.