Fate of Tether (USDT) Is Shaking Amid EU MiCA Rollout

With the European Markets in Crypto Assets (MiCA) regulation commencing fully on December 30, a cloud of uncertainty hangs over Tether (USDT). The European regulators have not expressly stated if USDT meets the new compliance guidelines. MiCA Uncertainty Surrounds USDT However, Coinbase, the U.S. leading crypto exchange, delisted USDT from its European services earlier this month in an anticipatory move. Coinbase cited the MiCA regulatory compliance guidelines as the reason for the delisting. Other major exchanges, such as Binance and Crypto.com, have continued to offer USDT to its users in Europe. This has generated speculation about the true status of one of the world’s dominant stablecoins. With no clear policy statement from the regulators on MiCA and USDT, market participants have been left guessing. The statement from a MiCA Crypto Alliance’s Technical Committee member did little to provide any clear stance. Juan Ignacio Ibañez, while commenting on the situation, maintained that no regulator has proclaimed USDT non-compliant. Ibañez, however, stated that the absence of a clear proclamation does not imply that USDT is compliant. Tether’s Strategic Moves Amid Uncertainty Analysts have warned that Tether’s refusal to comply with the MiCA regulations might affect Europe’s market . Notably, users in the region could experience major disruptions and weaken Europe’s status as a hub for crypto innovation. Additionally, an official ban on USDT might result in soaring costs for traders and impact market liquidity. Interestingly, a financial analyst, Jacob King, observed that Tether had not minted new coins in over two weeks. King believes the impact of this and an official ban could cause significant disruptions. Amid the uncertainty, Tether has invested in European stablecoin company StablR. StablR, licensed in Malta, issues Euro and U.S. dollar stablecoins. The move by Tether suggests a strategic development to maintain a foothold in the EU market. What Lies Ahead for Tether? Meanwhile, Paolo Ardoino, Tether’s CEO, has justified the company’s operational practices, noting that they have not violated any known guidelines. Ardoino emphasized the company remains focused on network collaborations and USDT’s practical uses in the market. The next few hours might unfold new developments and clarify MiCA and the USDT episode. The post Fate of Tether (USDT) Is Shaking Amid EU MiCA Rollout appeared first on TheCoinrise.com .