Tether Faces European Ban: USDT Delistings Begin Across Europe
When Donald Trump pledged to lead America in cryptocurrency, Europe took a different approach with the Tether ban. The largest stablecoin, Tether (USDT), is seen as perfect for cryptocurrency transactions because of its dollar-pegged value. The same stablecoin, though, can be the cause of a crypto market meltdown.
Stablecoin is in serious trouble as a result of Tether’s disregard for the Markets in Crypto-Assets (MiCA) legislation in Europe. Stablecoins like Tether need an e-money license in order to trade on cryptocurrency exchanges under MiCA regulations. USDT was delisted from numerous cryptocurrency exchanges on December 30, 2024, as a result of missing its deadline and becoming vulnerable to a Tether ban in Europe. Because of the role of digital assets in the market, this Tether news could have a negative effect on the cryptocurrency market.
Analysts Sound Alarm: Tether Faces Liquidity Woes and Growing Criticism
Significant liquidity problems could result from this delisting, which could lead to a crypto crash, particularly because market sentiment is already shifting away from greed. Crypto transactions, trading fees, and USDT pair trades will all be impacted by this delisting. This may eventually result in a shortage of liquidity and a crash in the cryptocurrency market. Above all, this will lessen its market dominance, which has gradually increased since reaching support in March. However, since there is a negative link between the two, the drop might aid in the increase in the price of Bitcoin.
Jason, a financial analyst, alerted everyone to the Tether ban in addition to the news about the minting hold of Tether. In his most recent X post, Jason disclosed that Tether hasn’t minted anything in more than two weeks. More significantly, he has referred to Tether as both the currency market’s glue and a ticking time bomb that will blow up when it is banned and the exchange is delisted.
Curiously, Tether has always dominated the market in spite of being banned in several places, but criticism constantly follows. While well-known venture capitalist Jason Calcanis referred to Tether as the standard for the darkest transaction, Justin Bons termed it a $118 billion swindle. He even doubted its ability to function because it had failed the audit of any significant corporation.
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