USDT is not compliant and may face delisting?
Amid rumors that USDT may be delisted from Coinbase Europe, Tether plans to launch a new technical solution for the European market to comply with the EU’s MiCA regulations.
The solution will address concerns regarding regulatory requirements that may impact stablecoins and banking infrastructure.
Tether is about to launch new technical solutions designed specifically for the European market to adapt to the region’s changing regulatory environment. The plan was revealed amid rumors that USDT may be delisted from Coinbase Europe.
“As we have consistently stated, certain aspects of MiCA make the operation of EU-licensed stablecoins more complicated and could introduce new risks to local banking infrastructure and stablecoins themselves,” Tether said in a statement on Friday.
“Tether is developing a technology-based solution that we will announce in due course and that will be tailored to the needs of the European market. We are very excited about our upcoming product strategy,” the company added.
Coinbase has set December 30, 2024 as the EU stablecoin compliance deadline. After the specified date, the exchange will delist non-compliant stablecoins in the European Economic Area (EEA). This change will not affect other regions. The decision is part of Coinbase's ongoing efforts to comply with MiCA regulations. Before Coinbase, several cryptocurrency exchanges such as OKX, Bitstamp and Uphold terminated services for non-compliant stablecoins in the EU before MiCA was fully implemented.
Tether CEO Paolo Ardoino previously explained that the company is still discussing concerns with regulators related to the strict cash reserve requirements imposed by the MiCA regulation.
Ardoino warned that strict requirements could create systemic risks for banks and digital assets, making them vulnerable to large-scale withdrawals, similar to what happened at Silicon Valley Bank.
While Tether said some aspects of MiCA could pose challenges for EU-licensed stablecoins, the company praised EU regulators for creating a structured regulatory environment that is critical to the industry’s growth.
“The use cases for stablecoins in Europe are very different from those in emerging markets and developing countries where USDT is very popular,” Tether said. “The European economy is stable and well-structured. In addition, the regulatory environment is evolving with the introduction of MiCA. “Tether appreciates the efforts of EU regulators in establishing a structured framework as it plays a key role in promoting the growth of this industry.”
