Tether (USDT) Delistings Loom as MiCA Regulatory Deadline Approaches

The new European regulatory framework, which is set to start in a matter of days, could completely reshape the current state of the market

The European regulatory landscape is set to undergo a significant transformation with the imminent launch of the Markets in Crypto-Assets (MiCA) framework, which will introduce stringent regulatory measures for the crypto industry within the region.

The framework, which will become fully operational on December 30, will impose new information and regulatory requirements for crypto asset issuers and service providers.

Moreover, the framework will establish clear rules for consumer protection and market integrity, while also introducing specific regulatory measures for stablecoins.

The inclusion of stablecoins in the framework has sparked considerable discussion, particularly in relation to Tether (USDT), the world's largest stablecoin by market capitalization.

According to some interpretations of MiCA's rules, USDT may not be considered compliant with the framework's standards.

In response to the regulatory developments, Coinbase, one of the world's largest cryptocurrency exchanges, announced its decision to delist USDT from its platform this December, aligning itself with the MiCA framework.

While the framework will come into full effect on December 30, it includes an 18-month transition period for entities like Tether to achieve compliance.

Despite the absence of further reports on exchange-initiated USDT delistings, Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, expressed his anticipation for additional delistings in an interview with Cointelegraph.

Meanwhile, Tether is pursuing strategies to ensure its continued presence in the European market.

One such initiative involves an investment in StablR, a European stablecoin issuer. This move is significant as StablR holds an e-money license from Malta, rendering it compliant with MiCA's regulatory standards.

However, given the limited timeframe remaining until December 30, it remains uncertain whether major cryptocurrency exchanges will carry out further USDT delistings in the lead-up to 2025.

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