EU’s Crypto-Asset Regulation Takes Effect Amid Uncertainty Surrounding Tether’s USDT Status
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MiCA in Effect in Europe, but Tether’s USDT Future Remains Uncertain
The EU’s Markets in Crypto-Assets (MiCA) Act has officially come into effect, yet Tether’s USDT has not received compliance certification. This has raised concerns about its future in the EU market.
MiCA imposes strict requirements on stablecoin issuers, and major players like Tether face capital reserve and liquidity mandates that could lead to their withdrawal from the region. Adding to the uncertainty, regulators have not provided clarity on whether USDT meets the new norms. This lack of guidance leaves its status within the EU’s single market in limbo.
Tether’s vast market capitalization and global popularity could either make or mar its position in Europe. Under MiCA, small stablecoin issuers must keep 30% of their reserves in low-risk commercial banks within the EU, while larger players like Tether must maintain 60% or more. These reserve and liquidity directives could prove challenging for Tether, as its large capitalization of $137.55 billion and widespread adoption make compliance economically unfeasible without potentially disrupting the broader crypto ecosystem.
Tether’s huge market cap. Data via Coinmarketcap
Source: http://www.cryptonewsz.com
