Counted Hours Left! Will Tether (USDT) Be Delisted from Exchanges?

The European Union’s initiative to more tightly regulate crypto assets is putting Tether’s USDT stablecoin in a difficult position.

The upcoming Markets for Crypto Assets Regulation (MiCA) will require stablecoin issuers to obtain an e-money license, which could lead to Tether being delisted from some major European exchanges.

MiCA Regulations and Its Impact on USDT

The MiCA regulation aims to make crypto markets in Europe more regulated and transparent, but it also puts huge pressure on existing stablecoins.

Since Tether has not been licensed to meet the new requirements, some exchanges have begun delisting USDT by December 30, 2024. Major platforms like Coinbase have already begun the process of delisting Tether, but other exchanges are awaiting clear guidelines from the European Securities and Markets Authority (ESMA), which suggests an uncertain future for Tether and similar stablecoin issuers.

Expected Changes in European Crypto Markets

The delisting of Tether could have serious implications for liquidity and trading dynamics in crypto markets in Europe, as traders could shift to fiat currencies or other less liquid stablecoins instead of highly liquid stablecoins like USDT.

These changes could also affect Europe’s competitive position in global crypto markets, with experts noting that the MiCA regulations could lead to declines in overall crypto market liquidity, especially if a widely used stablecoin like USDT is withdrawn from the market.

Tether management stated that despite the challenges in Europe, they are determined to continue their commitment to the region. The company continues to support new MiCA-compliant stablecoin projects and aims to comply with the necessary regulations to maintain their presence in the European market.

In conclusion, the upcoming period for Tether and the European crypto market will present various challenges along with the process of adapting to new regulations. The strategy that Tether will follow in this process and the reaction of the European crypto markets are awaited with curiosity.