As a seasoned analyst with over two decades of experience in the ever-evolving financial market, I find myself intrigued by the recent development between Tether’s USDT and Coinbase within the European Union. The impending delisting of several stablecoins, including USDT, due to the MiCA regulations coming into effect in 2024, is a clear indication that the regulatory landscape for cryptocurrencies is becoming more stringent.
Beginning tomorrow, Tether’s USDT and five other stablecoins will no longer be available on Coinbase’s European platforms due to impending EU cryptocurrency regulations set forth by MiCA, which are scheduled to take effect on December 30, 2024.
As reported by a representative from Coinbase, it’s expected that they will have to limit their services for the assets including USDT, PAX, PYUSD, GUSD, GYEN, and DAI. These assets do not meet the standards set forth by MiCA (Markets in Crypto-Assets) regulations.
However, USD Coin (USDC) and EURC, the euro-backed stablecoin, will continue to be supported by Coinbase, given that they satisfy the necessary requirements.
By June 30th, 2024, according to MiCA regulations, any entity issuing stablecoins must acquire an e-money license to operate within the European Economic Area (EEA). Currently, Tether does not hold this license, but negotiations regarding this matter are taking place.
Additionally, Coinbase notified users in October 2023 that they might remove tokens that weren’t compliant. Those who owned the impacted stablecoins could exchange them for USDC to maintain uninterrupted service.
The company also mentioned that they might review the prospect of restoring services for stablecoins that meet MiCA standards at a later time.
As a researcher studying the European crypto market, I’ve observed that USDT, one of the world’s most utilized stablecoins, plays a significant role. A potential change might influence the market liquidity here. Yet, this shift could also present an opportunity for USDC and other compliant stablecoins to expand their presence in the region, potentially increasing their market share.
In the meantime, Tether asserts its assurance in navigating regulatory changes; however, should it fail to obtain a license under MiCA, further removals from European exchanges may ensue.
Tether’s CEO, Paolo Ardoino, criticized certain exchanges for acting too hastily. Tether is optimistic that they can effectively manage these changes, maintaining their momentum towards fostering financial accessibility and innovation, especially in areas with limited or inefficient traditional banking systems.
Read More
- POL PREDICTION. POL cryptocurrency
- Smino and Samara Cyn To Hit the Road on ‘Kountry Kousins’ Tour
- PYTH PREDICTION. PYTH cryptocurrency
- Hong Kong Treasury says crypto is not a ‘target asset’ for its Exchange Fund
- Maluma Enters His Loverboy Era With New Single “Cosas Pendientes”
- Ananya Panday claims ‘its tough being Bhidu’ after working with Jackie Shroff; find out why
- The Vampire Diaries Nina Dobrev Reunited With Co-Stars To Recreate Throwback Photo, And I’m Not The Only One Loving It
- AI16Z PREDICTION. AI16Z cryptocurrency
- EXCLUSIVE: Alia Bhatt in talks with Dinesh Vijan for a supernatural horror thriller; Tentatively titled Chamunda
- SEN PREDICTION. SEN cryptocurrency
2024-12-13 00:06