Big news! USDT is banned by the EU, and the cryptocurrency market is in turmoil again

Click the avatar live to watch the live broadcast and chat!

On December 30, the EU will officially implement the "Markets in Crypto-Assets Regulation" (MiCA), which will enter a new stage of regulation of the crypto market, especially stablecoins. This new regulation means that Tether Limited has launched a compliant platform for USDT to withdraw from the EU, which has a significant impact on the liquidity and regional competitiveness of the crypto industry.

Why is USDT banned?

MiCA requires stablecoin issuers to hold an electronic money license, sufficient reserves, and physical transactions are closely monitored. However, USDT failed to meet these standards and is about to disappear from the EU market. As the world's most widely used stablecoin, USDT provides investors with a hedging tool when the market fluctuates. Its withdrawal will undoubtedly have an inevitable impact on the EU market:

Liquidity challenges:

After USDT withdraws, EU users may need to turn to fiat currencies or other stablecoins (such as USDC or DAI). However, whether these alternatives can match USDT in terms of market demand and liquidity remains to be seen.

Rising transaction costs: USDT is widely used in cryptocurrency transactions, and its disappearance may lead to transaction fragmentation, exacerbating prices while increasing investors' operating costs. Market reaction and regulatory impact on transactions The EU's strict regulation is intended to increase transparency and prevent financial crimes, which puts many innovative companies and crypto companies under pressure. Data shows that European crypto venture capital has fallen to its lowest level in four years, with investors mainly dissatisfied with strict policy requirements. Policy on Soviet countries: The United States has relatively extensive cryptocurrency regulation and policy intimidation to support the digital economy. Asian countries such as Singapore have attracted a large number of crypto companies and talents with flexible regulation. This policy difference may be similar to Europe's competitiveness in the global crypto market, motivating companies and capital to go abroad. Click on the avatar live to watch the live broadcast and chat!