The new MiCA regulation has led major European crypto platforms to suspend USDT, causing mixed reactions.
Suspension of USDT: Reaction and Consequences
On January 29, 2025, Crypto.com announced the suspension of USDT and nine other tokens in Europe starting January 31 to comply with MiCA regulations. Previously, Coinbase took similar action in December 2024 by removing USDT and five other cryptocurrencies. Tether expressed disappointment over these 'hasty' decisions, citing a lack of clarity regarding their justification.
Impact on the European Crypto Market
Tether believes that the new regulations could significantly disrupt the European cryptocurrency market. The company notes that dollar-backed stablecoins remain underutilized in the European Union, unlike in emerging markets where USDT plays a crucial role. Meanwhile, the ESMA has demanded that European crypto platforms withdraw non-compliant stablecoins by the end of March 2025.
Future Steps and Strategies for Tether in Europe
Despite existing disagreements, Tether is working on its European strategy to comply with MiCA requirements, proposing innovative solutions like Hadron. Meanwhile, criticism of European regulation continues, including recent comments by former US President Donald Trump, who described the new measures as 'very unfair' to American companies.
The situation concerning MiCA and its impact on the stablecoin market in Europe remains uncertain, with both positive and critical responses from industry stakeholders.
