Tether (USDT) Faces Removal From European Exchanges Due to MiCA Non-Compliance

The deadline for compliance is December 30, 2024, raising uncertainty among market participants.

The clock is ticking for Tether (USDT) as the new Markets in Crypto-Assets (MiCA) regulations approach their December 30, 2024 deadline. If Tether fails to comply with these regulations, it could face delisting from European exchanges.

According to a report by Cointelegraph, no regulators have explicitly stated that USDT is non-compliant, but this does not necessarily mean that it is in compliance either.

Tether has not minted any new coins in over two weeks, which could be a sign of regulatory challenges, according to financial analyst and value investor Jacob Kinge. Non-compliance could lead to a formal ban on USDT, which would reduce liquidity and increase transaction costs on European trading platforms.

The broader impact of a potential ban on USDT is also a concern, according to Granata Consulting founder Joseph Hurtado, who believes it could weaken Europe's position in the tech and cryptocurrency sectors.

The crypto community is divided on the issue, with some supporting stricter regulations to stabilize the market and others fearing significant disruptions.

In other developments, criticism of Tether's operations continues to surface. All-In Podcast host Jason Calacanis questioned why Tether, which claims to hold substantial reserves, has not been audited by a major firm like Deloitte, KPMG, PWC, or EY. Instead, Tether relies on assurance reports from BDO Italia.

On the other hand, crypto advocate Teddy Bitcoin suggested that the halt in new Tether issuance might be due to reduced market demand rather than regulatory challenges.

Tether CEO Paolo Ardoino highlighted the company's focus on practical use cases for USDT and BTC, emphasizing their collaboration with industry partners to expand their network.

In related news, Coinbase has warned its users that it may delist stablecoins that do not comply with MiCA regulations, including USDT, a move that was previously reported by Finance Magnates.