As of December 29, 2024, Tether's USDT stablecoin is facing regulatory challenges in certain regions, but it has not been universally banned.
European Union (EU):
The EU's Markets in Crypto-Assets (MiCA) regulations, set to be fully implemented by December 30, 2024, impose strict requirements on stablecoin issuers. Tether has not obtained the necessary licensing under MiCA, leading some EU-regulated exchanges to plan the delisting of USDT to comply with the new rules. This move is expected to impact market liquidity within the EU.
United States:
In the U.S., proposed legislation like the Lummis-Gillibrand Payment Stablecoin Act aims to regulate stablecoin issuers, favoring those with banking licenses. Tether, being an unregistered entity in the U.S., could face restrictions if such legislation is enacted, potentially limiting its use among U.S. users.
China:
Chinese authorities have intensified their crackdown on cryptocurrency activities, including the use of USDT in illegal foreign exchange transactions. The Supreme People's Procuratorate has declared that using USDT as an intermediary between local and foreign currencies is illegal, leading to increased enforcement actions against such activities.
India:
In India, there is no official ban on USDT. However, law enforcement agencies have taken action against fraudulent schemes involving cryptocurrencies. For instance, the Delhi Police recently seized over 100,000 USDT linked to a scam and arrested multiple individuals involved.
In summary, while USDT is encountering regulatory hurdles and potential delistings in specific regions, it remains in circulation globally. Users should stay informed about local regulations and exercise caution when engaging in cryptocurrency transactions.