#Crypto2025Trends

USDT on hold in Europe: MiCA sows doubt among crypto platforms

Europe is preparing to shake up the world of cryptocurrencies with the arrival of MiCA (Markets in Crypto-Assets), a new regulation that will come into force at the end of December 2024. While this initiative aims to regulate stablecoins and increase transparency, it is causing growing concern, particularly around USDT, the most widely used stablecoin in the world.

The big question remains unanswered: will USDT be able to comply with European requirements? The silence of European regulators is plunging crypto exchanges into total uncertainty. Platforms like Coinbase have already decided to withdraw USDT in Europe to anticipate the changes, while others, like Binance and Crypto.com, are staying the course while waiting for clear guidelines.

MiCA imposes strict rules on stablecoins, such as cash reserves only, which could weaken players like Tether. Paolo Ardoino, CEO of Tether, questions the risks of such an approach, insisting on the need for increased flexibility, notably via reserves in treasury bonds.

In the meantime, this period of uncertainty is slowing down platforms, fragmenting the European market, and could cost the crypto ecosystem in Europe dearly. Will this regulation be a springboard or a brake for the future of cryptos in the region?

To be followed closely!