Big news from Europe! Stablecoins are being "cleaned up"! Will digital currencies such as USDT be collectively removed from the shelves?
In 2019, the European Union proposed the Cryptocurrency Market Law "MiCA", which will officially take effect in July this year. This law has clear and strict regulatory systems for crypto exchanges and stablecoin issuers.
The negative impacts that may be caused at present are:
* Strict rules, exchanges or stablecoin issuers will face millions of euros in penalties if they violate them;
* USD stablecoin (USDT) is restricted;
* NFT is in a gray area and may be included in the regulation.
In response to the regulation, OKX, the world's second largest exchange, has removed USDT trading pairs in Europe. In fact, the EU's stablecoin market has already begun to build, such as EURC issued by USDC issuer Circle, EURT issued by Tether, and EURCV issued by Societe Generale.
The main reason why the EU considers this is that it is worried about what to do if the US dollar collapses? After all, USDT and USDC are both pegged to the US dollar. Once the US dollar fluctuates violently, it will have a huge impact on the crypto assets held.
Since the collapse of FTX, the market has been calling for more and more official regulation. The EU's first step is believed to help crypto assets enter the "rule of law era".