USDT delisting crisis: Tether takes emergency measures to deal with it
Recently, Tether's stablecoin USDT may be kicked out of the European Coinbase exchange. As soon as this news came out, the cryptocurrency circle exploded! This is not a trivial matter. It is related to the future of the European crypto market.
USDT is one of the best stablecoins in the world. If it is really delisted, the wallets of those who hold it will shrink, and investors' confidence in the crypto market will also be chilled. After all, stablecoins are like the stabilizing force of the crypto market. Whether it is stable or not is directly related to the safety of the entire market.
This crisis is because Tether did not keep up with the newly introduced MiCA regulations of the European Union. This regulation is very strict on crypto assets, requiring stablecoin issuers to have sufficient cash reserves and comply with a bunch of rules. Coinbase said that by the end of 2024, all stablecoins that do not comply with MiCA regulations will be removed from the shelves. If Tether can't handle this, USDT will be finished in Europe.
But Tether is not a pushover. They immediately came up with new tricks to deal with it. They plan to expose their cash reserves for everyone to see, and then issue a reserve audit report regularly so that everyone can have a bottom line. They also need to upgrade their technology, using more powerful smart contracts and multi-signature technology to make USDT safer, more traceable, and funds tamper-proof, so that users' assets are more secure.
Tether's head said that although the MiCA regulations are strict, it is a good thing for the industry. It can set rules for the market and is good for long-term development. They are willing to work with regulators to find the balance between compliance and innovation.
Other trading platforms have also started to take action, and stablecoins that do not comply with MiCA regulations must be removed from the shelves. It is not difficult to see that the compliance of the crypto market is a foregone conclusion.
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