This week, the market value of USDT fell nearly 1.1%, dropping to $137.24 billion, marking the largest decline since the FTX collapse in November 2022. The main reason is that several EU exchanges and Coinbase decided to delist USDT due to non-compliance with the MiCA regulations that take effect on December 30. Although this delisting has raised concerns about a general decline in the crypto market on social media, industry experts believe that the negative impact is mainly limited to the Eurozone, and the global market may not be significantly affected.
Karen Tang stated that the EU is not the largest crypto market, and the demand for USDT remains strong in regions like Asia and the United States. Therefore, although EU regulations may affect its circulation locally, USDT's dominance will continue. Additionally, while the MiCA regulations may constrain digital asset innovation in the EU, they could also drive the industry toward a more compliant and transparent direction, which may benefit the healthy development of the market in the long run.
Overall, the influence of USDT in the global market will not be significantly weakened by regulatory changes in the EU; the market fluctuations in the Eurozone are short-term, and the overall trend of the global crypto market remains positive.