EU exchanges delist Tether's USDT in preparation for MiCA

20 December 202418:48 UTC
In preparation for the upcoming Markets in Crypto-Assets (MiCA) regulations in the European Union, European exchanges are collectively delisting Tether *USDTUSD. This may severely hinder the EU market's ability to benefit from the rising cryptocurrency market.
The election of Donald Trump in the United States is benefiting Tether along with the wider cryptocurrency industry, but market chaos in Europe could disrupt investment.
Tether prepares for MiCA
It has been clear for several months now that Tether USDT, the largest stablecoin, will not comply with the MiCA regulations. According to a new report, European exchanges have until December 30 to delist the asset. However, there is growing concern in the European cryptocurrency community, as Tether's withdrawal could have a significant impact on the market:
Othman Ahmed, CEO of the cryptocurrency trading company Zodiac Markets Holdings Limited, said: "I understand why it was done to a certain extent, but it is extremely exclusive and limited to European Union customers themselves because [USDT] is the most liquid stablecoin by a large margin".
Essentially, Tether is a highly useful stablecoin for crypto business operations in the European Union and a vital source of liquidity. Despite the space's high level of development and interest, some European financial products pale in comparison to the bull market centered in the United States.
In general, cryptocurrency investments in the European Union decreased in 2024 compared to other regional markets, with MiCA potentially causing further declines.
Tether is preparing for MiCA by scaling back its European services and instead heavily investing in new stablecoins that meet compliance requirements in the European Union. However, many key competitors see this as a crucial opportunity to reduce Tether's dominance in this market.
At the same time, there are concerns that this potential organizational chaos in the European Union comes precisely when other regional digital currency markets are thriving. Since Donald Trump's victory in the US presidential elections, the digital currency industry in the country has been flourishing. Teether's allies are receiving new appointments under Trump's administration, and the company is benefiting significantly in this field.
European investors will have to hope that the chaos surrounding MiCA and the departure of Tether will not reduce investment rates in general. Digital currencies are entering a new level of institutional and regional acceptance worldwide, but Europe may miss the opportunity.
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