Tether’s USDT could be delisted from European exchanges as early as December 28, 2024, due to its non-compliance with the European Union’s MiCA (Markets in Crypto-Assets) regulations. The deadline to comply with these rules is December 30, 2024.
Why is USDT affected?
The MiCA regulation aims to standardize and supervise crypto operations within the EU. Stablecoin issuers must obtain regulatory authorization in at least one EU member state. Tether allegedly failed to meet these requirements, which could result in:
USDT Delisting from European Exchanges: Reduced Liquidity and Increased Transaction Fees
Increased Volatility: The absence of USDT could disrupt markets and intensify price fluctuations.
Migration to other stablecoins: Investors could turn to compliant alternatives, such as USDC.
Implications for the market
1. Liquidity Challenges: As USDT is a mainstay of trading, its removal would affect trading volumes.
2. Impact on market stability: The absence of a key player could create a temporary imbalance.
3. Necessary adaptation: Traders will need to adjust by adopting compliant stablecoins or revising their strategies.
What to do as an investor?
Although the withdrawal of USDT depends on the actions of the exchange platforms, it is advisable to:
Track your platforms’ announcements: Stay informed of regulatory updates.
Plan for alternatives: Diversify your assets by exploring compliant stablecoins, like USDC.
Adapt your strategy: Anticipate potential disruptions and adjust your portfolios accordingly.
While this situation mainly affects European users, its repercussions could be felt across the global market. Stay vigilant and prepare to navigate this changing regulatory landscape.