Europe, December 30, 2024 – In a decision that is being called an “economic disaster” by industry analysts, the European Union has restricted the circulation of Tether (USDT), the world’s largest stablecoin.
The move, part of a new wave of strict regulations, is already prompting a mass migration of crypto investors and startups to more favorable regions such as Asia and the Middle East. Experts were not shy about criticizing it. “This decision does not protect anyone – on the contrary, it pushes Europe out of the global crypto market, while rivals such as Dubai and Singapore take advantage to attract billions in investment,” said Klaus Reinhardt, a market strategist.
The backlash was immediate: European crypto exchanges began suspending USDT transactions, causing panic among traders. Many users reported difficulties in migrating their assets to alternative stablecoins such as USDC or DAI, increasing volatility across the region.
The crypto community is not hiding its outrage, seeing the decision as a step backwards in technological advancement. “Europe is sabotaging its own position in the global financial landscape. While the world is moving forward, they are choosing to retreat,” said Sarah Leclerc, CEO of a France-based fintech. With investors already seeking more flexible jurisdictions and millions in liquidity evaporating, the big question is: can Europe make up for lost ground or will this decision be the beginning of its isolation in the digital asset market.
