#USDT

THE EXIT OF USDT FROM THE EUROPEAN EXCHANGES BEGINS.

The measure is implemented within the framework of the upcoming implementation of the Crypto Asset Market Regulation (MiCA) in the European Union.

OKX, the world's fourth-largest bitcoin (BTC) and cryptocurrency exchange by trading volume, will gradually phase out support for trading with Tether (USDT) trading pairs in European Union (EU) countries.

According to The Block, the decision was announced through an email sent to European merchants, which states that the rule came into force on March 14.

The rules require issuers of stablecoins to comply with the necessary requirements to obtain a license from a national financial regulator, in at least one of the EU Member States.

As set out by MiCA, these companies will begin to be regulated as electronic money institutions (EMIs). Consequently, only this authorization will give operators credentials to serve stablecoin users across the region's entire bloc of 27 countries. The fact affects not only the operation in Europe of USDT but of other stablecoins such as USD Coin (USDC) and DAI (DAI).

Additionally, they must comply with EU regulatory and capital standards, have a registered office in the area and a 1:1 liquid reserve that allows for the smooth redemption of assets at any time.

This is why stablecoin-related companies, including exchanges, have been preparing in advance to comply with MiCA. There are expected to be restrictions on the use of certain stablecoins in the region in the coming months.

The above explains the measures taken by OKX, which are also being implemented by other cryptocurrency exchanges.

Among them is Binance, which announced last year its plan to remove all stablecoins from its platform in Europe by June 30, 2024.