USDT, the largest stablecoin, has faced a decline in market value by over 1% due to regulatory changes in Europe.
Background of USDT’s Market Value Decline
The recent decline in USDT’s value is due to the removal of the stablecoin by EU exchanges following MiCA regulations. By December 30, 2024, MiCA will be fully enforced, but the rules concerning stablecoins have been effective for six months. These measures require issuing entities to obtain licenses for tokens like USDT.
Market Dominance of Asia and the US Continues
Despite the changes in Europe, analysts believe the impact will be limited. Karen Tang asserts that the European market is not dominant for cryptocurrency. Analyst Bitblaze highlights that 80% of Tether's volume comes from Asia.
Tether’s Compliance Measures with MiCA
Tether is investing in companies like StablR and Quantoz Payments to comply with new regulations. Experts believe such moves will help maintain USDT’s leadership globally.
Tether is taking steps to adapt to European regulations, helping retain its influence on the global market.
