The MiCA Law eliminates USDT from the European market: What alternatives are gaining ground?

#USDT will be prohibited in several countries: users have one week to exchange them

The implementation of the MiCA Law will bring significant changes to the European crypto market, limiting USDT and favoring stablecoins like $USDC C and #EURC

The European Union will fully activate the MiCA Law on December 30, removing USDT, a key stablecoin, from the market, marking a turning point in the European crypto ecosystem.

This new regulatory framework offers advantages to competitors like USDC and EURC, backed by Circle, which aim to establish themselves as dominant alternatives in the region thanks to the support of this regulation.

USDT, with a market capitalization of nearly 163 billion dollars, is losing ground in Europe and faces the challenge of adapting to these significant regulatory changes.

USDT faces challenges from the MiCA Law

Compliance with the strict provisions of the MiCA Law has proven impossible for USDT, a stablecoin that does not meet the issuance requirements set by European regulations, affecting its presence in the market.

According to the MiCA Law, all stablecoins on centralized exchanges must be issued by entities with electronic money licenses, and their reserves must be backed by at least two-thirds by independent banks.

Due to these requirements, platforms like Binance and OKX have decided to remove USDT from their listings, while other operators must adapt before December 30.

This situation has led Tether to suspend support for its euro-pegged stablecoin, EURT, on November 27, marking a clear loss of influence in the European market.