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Crypto Alert: Tether’s USDT Delisting – What Every Investor Must Know
Tether’s market capitalization has taken a significant hit following Coinbase’s decision to delist its popular USD-pegged stablecoin, USDT. The move comes as the European Union’s Markets in Crypto Assets (MiCA) regulations have officially come into effect.
Prior to this development, Tether’s USDT held dominance in the crypto market, boasting a massive market capitalization of $141 billion. However, with Coinbase’s decision, its market cap has suddenly dropped by an astonishing $4 billion, now standing at $137 billion.
Coinbase cited “non-compliance” with MiCA guidelines as the reason for delisting USDT from its platform. Meanwhile, Binance and other exchanges have restricted certain USDT services for EU users, stating that they will continue to support USDT deposits and withdrawals, but encourage investors to consider using alternative, compliant stablecoins like USDC and EURI.
The lack of an official statement from the regulator, ESMA (EU Securities and Markets Authority), has sparked widespread speculation. Industry insiders argue that USDT’s delisting could have far-reaching implications for liquidity in EU markets and potentially reinforce US dominance.
Juan Ignacio Ibanez, a technical member of the MiCA Crypto Alliance, has weighed in on the situation, stating that ESMA’s silence does not necessarily imply USDT compliance. “No regulators have explicitly stated that USDT isn’t compliant, but this doesn’t mean it is,” he explained.
On the other hand, Samson Mow, CEO of BTC nation-state advisory firm Jan3, has labeled Coinbase’s decision as a “Tether FUD” (Fear, Uncertainty, and Doubt). He noted that no other major exchange has plans to delist USDT in the short term for European users, citing a grace period exceeding 12 months.
The ongoing uncertainty surrounding Tether’s compliance with MiCA guidelines may have significant consequences for investors. As such, it is essential that every investor understand the implications of this decision and stays informed about any potential updates from regulatory bodies or exchanges.
Disclaimer: AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.
Source: ambcrypto.com
