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European Crypto Exchanges to Delist USDT by December 30

European Crypto Exchanges to Delist USDT by December 30

HappyCoinNewsHappyCoinNews2024/12/21 04:00
By:HappyCoinNews

By the end of December 2024, all European crypto exchanges will be forced to exclude stablecoin USDT issuing company Tether from their platforms in order to comply with the MiCA regulation, which introduces licensing and regulatory standards for stablecoins and strengthens anti-money laundering measures.

The new European Union rules were designed to give regulators a deeper understanding of cryptocurrency movements and help them prevent crimes such as money laundering, which blockchain forensics experts say USDT is often used for.

Cryptocurrency executives warn that the MiCA regulation could ultimately dry up markets' liquidity without achieving the EU's goals, undermining the bloc's appeal to traders.

As part of efforts to tighten oversight of the asset class, MiCA requires that all stablecoins listed on centralized exchanges be issued by an entity with a so-called e-money license.

Issuers must hold up to two-thirds of the reserves backing their tokens in an independent bank and control all transactions made for payment purposes.

Main competitor Tether Circle already received the license in July of this year. Tether has not yet received it, although it does not rule out trying to do so in the future. If this does not happen, regulated exchanges should exclude token from the listing until December 30. Representatives Tether has not yet commented on its plans to obtain an electronic money license.

Against this backdrop, there is a risk that Europe will become an outsider in the development of the crypto industry, especially since venture investments in crypto startups in Europe, according to PitchBook, have already fallen to a four-year low in 2024, in contrast to the US, where there has been a recovery in investments from funds.

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