The European Union’s forthcoming cryptocurrency regulations have sparked uncertainty regarding the compliance of Tether’s USDT stablecoin. Coinbase, a major U.S. crypto exchange, preemptively delisted USDT in mid-December, citing adherence to the EU’s new Markets in Crypto-Assets Regulation (MiCA). Despite this, the stablecoin continues to trade on several European platforms, as many await further guidance from EU regulators on USDT’s MiCA compliance.
No explicit statements from EU regulators have declared USDT non-compliant, but the absence of clear guidance leaves room for interpretation. Juan Ignacio Ibañez of the MiCA Crypto Alliance noted that exchanges like Binance and Crypto.com have no immediate reason to follow Coinbase’s lead in delisting USDT, suggesting that Coinbase’s decision might be a cautionary maneuver against potential regulatory uncertainties.
With MiCA set to be fully enforced by December 30, 2024, the possibility of USDT delistings looms. Ibañez emphasized the importance of closely observing how exchanges approach the deadline, whether through immediate action or a progressive strategy, possibly holding out for official statements from EU regulators. He warned that a “wait-and-see” approach could incur significant regulatory risks under MiCA.
Conflicting reports further fuel the uncertainty surrounding USDT’s future in Europe. While some media outlets have suggested that European exchanges must delist USDT by the regulatory deadline, EU authorities have yet to mandate such action. The European Securities and Markets Authority (ESMA), responsible for overseeing MiCA compliance, has refrained from clarifying USDT’s status, stating that it is liaising with market participants to resolve issues related to stablecoins.
As of December 27, trading of USDT persists across various European crypto exchanges, including Binance EU and Crypto.com, though these platforms have not revealed any plans regarding potential delisting.
MiCA’s implementation timeline comprises a transitional phase that extends to July 2026. During this period, entities currently providing crypto services under national laws may continue operations, owing to transitional measures such as grandfathering clauses, which allow businesses to function under existing regulations until MiCA authorization is granted or refused. This provision aims to ensure continuity for service providers but also results in differing levels of consumer protection throughout the EU.
In conclusion, the uncertainty surrounding USDT’s compliance with MiCA remains, with key decisions likely hinging on forthcoming statements from European regulators as the MiCA enforcement date approaches.
