EU Silence Doesn’t Make USDT MiCA Compliant, Executive Says
While the MiCA implementation phase ends on December 30, 2024, there is also an 18-month transition phase in the overall 36-month MiCA timeline.
The European Union’s cryptocurrency regulations are set to come into full effect in a few days, but there is still a lot of uncertainty surrounding the Tether USDt stablecoin.
US cryptocurrency exchange Coinbase delists Tether USDt
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In mid-December, citing compliance with the EU’s Markets in Crypto-Assets Regulation (MiCA).
Following the delisting of USDT from Coinbase, the stablecoin has continued to trade across the European Union, with many exchanges apparently awaiting further clarity from European authorities on USDT’s compliance with MiCA.
EU regulators have not stated whether USDt is MiCA-compliant, but that doesn’t mean the stablecoin isn’t seen as non-compliant in Europe, according to a member of the MiCA Crypto Alliance.
USDt’s Fate in Europe: All Eyes on MiCA Deadline
“No regulator has explicitly stated that USDT is non-compliant, but that doesn’t mean it is,” Juan Ignacio Ibanez, a member of the MiCA Crypto Alliance’s technical committee, told Cointelegraph.
Speaking about exchanges like Binance or Crypto.com continuing to trade USDT, Ibanez said there is no reason for crypto exchanges to delist USDT on the same date as Coinbase.
“Coinbase’s decision may reflect a proactive approach to avoid last-minute compliance risks or regulatory uncertainty, and is a precautionary approach,” he said.
Ibanez noted that the EU’s MiCA is expected to come into full force on December 30, so the delisting of USDT in the EU is likely to continue, adding:
“We have to look at December 30th. The question is whether all exchanges will delist USDT immediately, whether it will be gradual or whether some will play a ‘wait and see’ game waiting for regulatory approvals.”
Ibanez said the “wait and see” approach makes little sense compared to other MiCA requirements, noting that it could involve a significant amount of regulatory risk.
Conflicting reports on USDT delisting in EU
While some publications like Bloomberg have reported that European crypto exchanges must delist Tether’s USDt by December 30, European regulators have not provided such guidance as of the time of writing.
In October 2024, the European Securities and Markets Authority (ESMA) — the lead supervisor of MiCA compliance — declined to tell Cointelegraph whether USDt was considered a stablecoin restricted under MiCA.
A spokesperson for the European Securities and Markets Authority said the regulator is working with market participants and other stakeholders to address the issues surrounding stablecoins contained in MiCA.
Online reports indicate that Tether USDt (USDT) will cease trading across Europe after December 30, 2024, as shown in the screenshot below.
Coinbase, Europe, Tether, Mica
Source: MMCrypto
Cointelegraph reached out to ESMA for comment on USDt’s status under MiCA but did not receive a response at the time of publication.
As of December 27, USDT continues to trade on several cryptocurrency exchanges operating in Europe, including Binance EU and Crypto.com, Cointelegraph has learned. The exchanges have not commented on whether they plan to delist USDT in the EU in the near future.
MiCA transition phase ends in July 2026
While the MiCA implementation phase ends on December 30, 2024, there is also an 18-month transition phase in the overall 36-month MiCA timeline.
According to official information from the European Securities and Markets Authority, EU member states will have the option to implement “transitional measures” that would allow entities already providing crypto asset services under the applicable law in their jurisdictions to continue doing so during the transitional phase of MiCA.
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