As the MiCA framework edges closer to full implementation in 2025, the European cryptocurrency landscape is poised for significant changes. One major consequence is the expected delisting of various tokens by VASPs.

USDT's Potential Delisting and Key MiCA Requirements

USDT, the world's largest stablecoin by market cap, faces delisting from European exchanges due to MiCA's strict asset-referenced token rules. Article 34 requires all stablecoins to be fully backed by liquid reserves and ensure transparency.

Broader Impact on Other Tokens and Stablecoins

MiCA will force VASPs to delist other stablecoins and cryptocurrencies that cannot meet the law. Algorithmic stablecoins like DAI and BUSD could face similar challenges.

VASPs and Compliance with Regulations

For platforms like Coinbase, Binance, and Kraken, the cost of compliance will be significant. MiCA requires auditing each token for reserve, transparency, and governance compliance.

While MiCA regulations will lead to short-term disruptions, the long-term impact could be positive, as clearer regulations may attract more institutional capital to the European market.