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Tether, the company behind the widely-used USDt stablecoin, voiced its concerns over the recent market developments in Europe. This statement comes as cryptocurrency exchanges like Crypto.com begin to delist USDt in response to the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
Crypto.com confirmed on January 29 that it would remove Tether’s USDt and nine other tokens from its platform on January 31 to adhere to the new regulations.
Tether’s spokesperson conveyed disappointment with the hurried decisions made by exchanges in Europe, which have been influenced by the MiCA framework. in a sttament to CoinTelegraph, the representative criticized the lack of clarity in the statements that prompted such actions, suggesting that these moves could have been better informed.
The stablecoin operator warned that the MiCA-triggered changes could lead to significant risks for EU consumers and the local crypto market. According to Tether, the delisting of multiple tokens, including USDt, could place additional risk on EU consumers and potentially result in a "disorderly" market, especially given that MiCA is still in the early stages of being implemented.
Other exchanges have also taken steps to comply with MiCA, with Coinbase (NASDAQ:COIN) delisting six tokens in December 2024 and an additional two by January 30. Coinbase delisted Wrapped Bitcoin (WBTC) on its entire platform for reasons unrelated to MiCA on December 19, 2024. The exchange has expressed its commitment to reassessing and potentially re-enabling services for stablecoins that achieve MiCA compliance at a later date.
Despite the challenges posed by MiCA, Tether is finalizing its strategy for USDt in Europe. The company acknowledged that while some aspects of MiCA complicate the operation of EU-licensed stablecoins, it remains committed to ensuring compliance with evolving regulations. Tether is also focused on introducing new technologies and investing in projects designed to be MiCA compliant.
The European Securities and Markets Authority has urged crypto asset service providers to start restricting non-MiCA-compliant stablecoins by the end of January, with a complete restriction to be in place by the end of the first quarter of 2025. However, these tokens can still be listed in sell mode until March 31.
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