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Crypto Alert: Tether’s USDT Delisting – What Every Investor Must Know
As the clock struck midnight to usher in a new year, the crypto market was left reeling after Coinbase announced that it would no longer support Tether’s USDT stablecoin on its platform. The delisting has sent shockwaves through the industry, causing Tether’s market capitalization to plummet by a staggering $4 billion.
But what does this mean for investors? And is there any truth to the rumors surrounding Tether’s non-compliance with EU regulations?
First and foremost, it is essential to understand that USDT’s delisting from Coinbase’s platform has significant implications. In a nutshell, this means that users will no longer be able to purchase or sell USDT on the exchange. While some might argue that there are still other platforms where investors can access USDT, the fact remains that this move has already led to a drop of $4 billion in market capitalization.
But what about MiCA compliance? It is crucial for investors to know that ESMA, the regulator and adviser for MiCA compliance, has remained tight-lipped on the matter. This silence has led many to speculate as to whether Tether’s USDT might be non-compliant with these new regulations. However, Juan Ignacio Ibanez of the EU crypto compliance advocacy group MiCA Crypto Alliance emphasized that this silence does not necessarily imply compliance.
Ibanez noted that only Coinbase has delisted USDT at present, which raises more questions than answers. Samson Mow, CEO of BTC nation-state advisory firm Jan3, corroborated these sentiments, stating that other exchanges do not have plans to delist USDt in the short term for European users, and that local regulators have a grace period of over 12 months.
In light of this new development, some insiders have warned that the delisting could result in reduced liquidity in EU markets and potentially further solidify the dominance of US-based stablecoins.
Source: ambcrypto.com
