Tether’s USDT, the world’s largest stablecoin, faces potential delisting from European Union cryptocurrency exchanges starting December 30, 2024, due to compliance issues with the EU’s Markets in Crypto-Assets (MiCA) regulations.
Leading exchange Coinbase has already removed USDT for EU customers, while others like Binance and Crypto.com maintain a wait-and-see approach. The new MiCA framework requires stablecoin issuers to obtain e-money licenses, maintain reserves in recognized banks, and provide detailed disclosures – requirements that Tether has yet to meet.
Despite market concerns, crypto analysts suggest this might present a buying opportunity rather than trigger a market crash. USDT maintains a robust $138.5 billion market cap with $44 billion in daily trading volume, with 80% of its trading occurring in Asia.
EU crypto investors can still hold USDT in non-custodial wallets and trade on decentralized exchanges, though traditional exchange access will be limited. The restrictions specifically target MiCA-compliant platforms.
Read also: Starlink Doubles Internet Subscription Prices in Nigeria
Crypto experts have recommended diversifying stablecoin holdings and utilizing decentralized finance platforms for trades. Alternative stablecoins like USDC and FDUSD may likely see increased adoption in the EU market.
Tether CEO Paolo Ardoino has dismissed concerns, calling them a “poorly coordinated effort” by competitors. Unlike competitor Circle, which achieved MiCA compliance in mid-2024, Tether has yet to secure the necessary regulatory approvals.
While the EU delisting poses challenges for European traders, Tether’s significant presence in non-EU markets suggests it will maintain its dominant position in the global cryptocurrency ecosystem.
