Tether USDt and MiCA Compliance: What Crypto Exchanges Need to Know
Tether USDt– As the European Union’s Markets in Crypto-Assets Regulation (MiCA) comes into full effect on December 30, 2024, the fate of Tether’s USDt (USDT) stablecoin remains unclear. Despite a recent delisting by Coinbase, many crypto exchanges in the EU continue to trade USDt, waiting for clearer guidance from EU regulators on its compliance with the new regulations.
Coinbase Delists USDt, but USDT Trading Continues Across the EU
In mid-December, Coinbase, one of the leading U.S. crypto exchanges, delisted Tether’s USDt, citing adherence to MiCA regulations. Despite this, many exchanges in the EU, such as Binance and Crypto.com, have continued to offer USDt trading, raising questions about the stablecoin’s compliance status.
According to Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s Technical Committee, EU regulators have not explicitly stated whether USDt complies with MiCA. However, Ibañez emphasized, “No regulators have explicitly stated that USDT isn’t compliant, but this does not mean that it is.”
Delisting of USDT: A “Wait-and-See” Approach in the EU
As the MiCA regulation enters full force on December 30, 2024, the potential for further USDT delistings across the EU remains high. Ibañez speculates that some exchanges may delay their decision, adopting a “wait-and-see” approach until regulators provide further clarification on USDt’s status.
He added, “We should look at the Dec. 30 date. The question is whether all exchanges will delist USDT at once, whether it will be progressive, or whether some will play a ‘wait-and-see’ game expecting statements from the regulators.”
However, this approach may carry significant regulatory risk, as MiCA imposes stringent requirements on crypto assets in the EU.
Conflicting Reports on USDT Delisting in the EU
Conflicting reports have emerged regarding Tether’s USDt future in Europe. Some publications, including Bloomberg, suggest that all European crypto exchanges must delist USDT by December 30. However, as of now, EU regulators have not issued specific guidelines on the stablecoin’s status under MiCA.
In October 2024, the European Securities and Markets Authority (ESMA), a key supervisor of MiCA compliance, declined to provide clarity on whether USDt qualifies as a restricted stablecoin under MiCA. An ESMA spokesperson stated that the regulator was working with stakeholders to address issues related to stablecoins under MiCA.
Despite this, reports suggest that USDT could stop trading across Europe after the MiCA deadline, although no official confirmation has been provided yet. As of December 27, USDT trading continues on several major exchanges operating in Europe, including Binance EU and Crypto.com, with no official word on potential delistings.
Transitional Phase of MiCA: What It Means for USDT
While MiCA’s full implementation takes effect on December 30, 2024, the regulation also includes a transitional phaselasting until July 2026. During this period, exchanges and crypto asset service providers that are already operating under national laws will be allowed to continue offering services while they transition to MiCA-compliant structures.
The grandfathering clause in MiCA allows entities already offering crypto services under national laws to continue operating until July 1, 2026, or until they are granted MiCA authorization.
As ESMA explained, this transition phase will create a mix of regulatory regimes across EU member states, potentially leading to disparate levels of consumer protection. The transitional period will vary by country, with some member states, including France and Estonia, offering an 18-month grandfathering period, while others, such as Austria and Spain, will allow for a 12-month transition.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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