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EU’s Upcoming Crypto Rules Could Impact Liquidity Due to USDT Delistings
The European Union’s impending regulations on the cryptocurrency space have sparked concerns about potential implications on market liquidity. This is particularly concerning given the recent news that Tether (USDT) will not be delisting from major exchanges, despite its non-compliance with MiCA rules.
According to a recent announcement, OKX and other exchanges will maintain USDT’s listing status, but this could have unintended consequences in light of the upcoming EU regulations. The new rules aim to create a standardized framework for cryptocurrencies, including stablecoins like Tether.
The issue at hand is that USDT, being non-compliant with MiCA, may not be able to continue trading on European exchanges post-implementation. This could lead to liquidity issues and a significant impact on the overall market.
As we reported earlier today, Tether has made investments in various stablecoin issuers, including those aligned with MiCA regulations. While this move is seen as a step towards addressing compliance concerns, it may not be enough to mitigate the potential risks posed by the upcoming EU rules.
The ripple effect of these developments could be far-reaching, affecting global cryptocurrency markets and potentially impacting the very stability of stablecoin operations.
Source: cryptoslate.com
