Concerns Grow for Tether (USDT) as EU’s MiCA Regulation Takes Effect

As of December 31st, COINOTAG reports that the EU’s MiCA regulation has come into full effect, yet Tether’s USDT has not obtained the necessary compliance certification. This development raises significant concerns regarding its sustainability in the European market. The MiCA framework introduces stringent standards for stablecoin issuers, compelling major entities like Tether to adhere to reserve and liquidity mandates that could precipitate their withdrawal from the EU. Nevertheless, given Tether’s robust market capitalization and extensive global usage, an instant financial upheaval appears improbable. Concurrently, several European exchanges are initiating strategies to align with the new regulations, including Coinbase Europe, which has started delisting USDT and other stablecoins. Analysts suggest that the MiCA regulations could catalyze an exit for certain companies, foster market consolidation, and lead to increased investment and operational expenses across the board.