The EU’s Markets in Crypto-Assets (MiCA) regulation has been fully implemented and taken full effect from 30 December 2024. This has created a lot of uncertainty for Tether’s USDT future in the region, with the possibility of being delisted as it has yet to secure compliance certification.
With the implementation of MiCA and the stringent compliance requirements inherent in it for stablecoin issuers, there are serious speculations that Tether’s USDT will be banned from Europe especially if it fails to adhere to the standards prescribed by the European Union. However, the Tether CEO, Paolo Ardoino dismissed the speculation, describing it as a “poorly coordinated effort” by competitors and critics.
Speaking on the probability of Tether remaining in the league or being jettisoned, WeFi Head of Growth Agne Linge noted that meeting the necessary requirements could be economically challenging for large stablecoin issuers like Tether.
She said “The new EU law now requires that small stablecoins issuers keep 30% of their reserves in a low-risk commercial bank within the EU, while bigger players like Tether must keep 60% or more in banks,”
“Considering Tether’s large capitalization and global adoption, meeting this demand is not economically viable without disrupting the broader crypto ecosystem,” Linge added.
However, she also emphasised Tether’s capacity to withstand the ripple effect that will ensue if it exits the EU, noting that the company’s large market capitalization and global adoption make it less likely to face immediate financial consequences if it eventually exits the EU.
“Tether’s operations remain largely insulated from potential regional disruptions,” Linge said. “The company also has a high profit margin and is on track to end the year with $10 billion in earnings,” she added.
While Tether’s future in the EU is still uncertain, other crypto firms, including MoonPay have secured approval under the Markets in Crypto-Assets (MiCA) regulation, as announced by the firm on Monday via their official X platform.
