EU Exchanges Delist Tether’s USDT in Preparation for MiCA

December 20, 202418:48 UTC

In preparation for the upcoming Markets in Crypto-Assets (MiCA) regulations in the European Union, European exchanges are collectively delisting Tether*USDTUSD. This could severely hamper the EU market’s ability to benefit from the rising crypto market.

Donald Trump’s election in the US benefits Tether along with the broader crypto industry, but chaos in the European market could disrupt investment.

Tether is preparing for MiCA

It has been clear for months now that Tether (USDT), the largest stablecoin, will not comply with MiCA regulations. According to a new report, European exchanges have until December 30 to delist the asset. However, concerns are growing in the European crypto community, as Tether’s withdrawal could have a major impact on the scene:

“I understand why this was done to a certain extent, but it is very exclusionary and very limited for EU clients themselves because [USDT] is the most liquid stablecoin by far,” said Osman Ahmed, CEO of cryptocurrency exchange Zodia Markets Holdings Ltd.

Essentially, Tether is a very useful stablecoin for cryptocurrency operations in the EU and a vital source of liquidity. Although the arena has a high level of development and interest, some European financial products are dwarfed by the US-based bull market.

Overall, crypto investments in the EU fell in 2024 compared to other regional markets, and MiCA could cause them to fall further.

Tether is preparing for MiCA by scaling back its European services and instead investing heavily in new stablecoins that meet EU compliance requirements. However, several major competitors see this as a critical opportunity to reduce Tether’s dominance in this market.

At the same time, there are concerns that this potential regulatory chaos in the EU comes at exactly the time when other regional crypto markets are booming. Since Donald Trump’s victory in the US presidential election, the country’s crypto industry has been booming. Tether allies are getting new appointments under the Trump administration, and the company is benefiting significantly in this area.

European investors will have to hope that the chaos surrounding MiCA and the exit of Tether does not depress investment rates in general. Cryptocurrencies are entering a new level of institutional and regional acceptance around the world, but Europe may be missing out.