Tether’s flagship stablecoin, USDT, is facing renewed scrutiny in the European Union as the bloc’s landmark Markets in Crypto-Assets (MiCA) regulation prepares to enter full implementation phase on December 30, 2024.
While Coinbase has already delisted USDT in anticipation of MiCA, other well-known exchanges such as Binance and Crypto.com continue to trade stablecoins while awaiting clarity from regulators. Amid increasing speculation on social media about Tether’s future in Europe, questions remain regarding USDT’s compliance with stricter EU regulations and its potential impact on crypto liquidity.
Proactive delisting of Coinbase
The first big sign of trouble for USDT in Europe came earlier this month when Coinbase – a leading US exchange – delisted Tether for its EU customers. The company expressed compliance concerns given the upcoming MiCA requirements. Coinbase’s decision sparked heated debate across the crypto community, with some market participants welcoming the precautionary approach while others argued that Tether’s fate should depend on explicit guidance from European regulators.
Despite Coinbase’s move, no official EU body has officially stated that USDT is non-compliant. MiCA sets strict standards for stablecoin issuers, requiring e-money licenses, independent reserves at recognized banks, and detailed disclosure requirements. However, the European Securities and Markets Authority (ESMA) has yet to confirm whether Tether meets these benchmarks or not.
Exchange in “wait-and-see” mode
While Coinbase took immediate action, other major exchanges took a more cautious approach. Binance and…
