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Crypto alert: Tether’s USDT delisting – What every investor must know
The crypto market is in a state of panic after Coinbase announced the delisting of Tether’s USDT, citing non-compliance with EU’s MiCA (Markets in Crypto Assets Regulation) guidelines. The sudden move has sent shockwaves across the cryptocurrency space, causing USDT’s market cap to drop by a staggering $4 billion.
As of December 30th, 2024, MiCA regulations came into effect, and Coinbase decided to delist USDT from its platform. According to insiders, this is not a surprise, as some industry experts had predicted that Coinbase would take such an action. However, many are left wondering what the implications will be for investors.
The first major concern arises from the fact that the regulator, ESMA (EU Securities and Markets Authority), has remained silent on USDT’s compliance status. This lack of transparency has sparked widespread speculation about whether or not USDT is indeed non-compliant with MiCA guidelines.
Binance and other exchanges have taken a different approach, restricting some USDT services for EU users while continuing to support it for custody purposes. In a statement released earlier this week, Binance emphasized that its stance on non-MiCA stablecoins would remain unchanged until further notice. This has led many investors to question whether the ESMA’s silence means USDT is indeed non-compliant.
Juan Ignacio Ibanez, a technical member of the EU crypto compliance advocacy group MiCA Crypto Alliance, shed some light on the matter when speaking with Cointelegraph. According to him, the regulator’s inaction does not necessarily imply that USDT has obtained compliance. “No regulators have explicitly stated that USDT isn’t compliant, but this does not mean that it is,” Ibanez explained.
On the other hand, Samson Mow, CEO of BTC nation-state advisory firm Jan3, referred to the Coinbase delisting as ‘Tether FUD.’ He pointed out that apart from Coinbase, no other major exchange has announced plans to delist USDT. Furthermore, he highlighted that local European regulators have a grace period exceeding 12 months.
USDT’s market capitalization dropped significantly following Coinbase’s decision, falling by $4 billion and currently standing at $137 billion. Market participants are worried about the potential implications on liquidity in EU markets, as well as the possibility of US dominance due to the delisting.
It is essential for every investor to know that this development has significant consequences for traders and holders of USDT.
Source: ambcrypto.com
