The prominent stablecoin Tether (USDT) struggles with compliance issues regarding the new European Crypto Assets Market (MiCA) regulations.
Tether, the preferred stablecoin among traders, might be banned from Europe if it fails to comply with the new European Crypto Assets Market (MiCA) regulations by December 30, 2024.
According to experts at MyTokenChain, this scenario arises from the unique structure of Tether (USDT), which is not fully compliant with MiCA's provisions. Tether is structured as an "umbrella" enterprise, where the main firm, iFusion, holds a portfolio of assets and has no direct interaction with users.
This structure, common in offshore jurisdictions like the British Virgin Islands where Tether operates, contrasts with MiCA's requirement for a centralized contact point for users within the EU.
"If Tether fails to adjust its structure or obtain an exemption from MiCA by December 30, 2024, it risks being banned from the European market," the experts note. This situation also creates uncertainty for investors, who need to consider the implications of such a scenario when making investment decisions.
On the other hand, FTX Token (FTT) is showing promise today with a 7% rise in value. This increase follows FTX's announcement of a $16 billion cash refund plan for users, set to begin in January 2024.
After a tumultuous period with bankruptcy and legal challenges, FTX appears to be regaining investor confidence with this initiative. As FTX progresses with its plan, investors can anticipate a positive impact on the market. However, it's crucial to monitor the execution stages of FTX's announced plan.
The global cryptocurrency market has decreased by 1.5% in the last 24 hours, reaching a total of $3.29 trillion. Conversely, daily trading volume has increased by 12%, now at $90 billion. Bitcoin is currently trading at $93,400, while Ethereum (ETH) has risen by 1% to $3,421, and XRP has decreased by 3% to $2.12.
Among the day's top gainers is FTT with a 7% increase, while Bitget Token (BGB) experienced a significant 20% loss. As the market continues to be affected by regulatory changes and the price movements of major cryptocurrencies, investors are approaching these developments with caution.
