- Tether has lost market share across an entire continent after failing to comply with the European Union’s MICA rules.
- All crypto exchanges doing business in the European Union have removed USDT from their platforms.
- The current market void is being filled by USDC due to the lack of European stablecoins.
- European leaders have repeatedly expressed their dislike of American stablecoins.
- Tether still retains its UK market.
Tether’s USDT Removed from European Crypto Exchanges
Tether has been forced out of the European Union after reportedly failing to comply with the stablecoin laws. The largest stablecoin issuer had previously faced issues due to its non-transparent reserves.
Soon, top crypto exchanges operating in EU removed the stablecoin from their platforms complying with the MiCA rules.
Circle Gains the Most After Tether’s Exit
Circle is set to gain the most out of Tether’s exit from the European Union. Because of its strict adherence to compliance, and it is already a part of MiCA complaint stablecoins in Europe.
Europe’s Dissatisfaction with US Stablecoins
Several European leaders have repeatedly voiced concerns about US stablecoins, blaming them for eroding the dominance of the euro and other local fiat-pegged stablecoins.
The Deputy Governor of the Bank of France, Denis Beau, raised concerns about the dollarization of stablecoins, indicating that the market is entirely captured by US stablecoins. As of today, 90% of stablecoins in use in the European Union are USD-denominated.
Although similar voices were raised in the United Kingdom, no such impact on Tether has been seen yet.
What is MiCA?
MICA, or Markets in Crypto Assets, is a comprehensive European law that covers regulation, usage, and taxation of cryptocurrencies. The law was passed by the European Union in April 2023 and came into effect in December 2024.
Although MiCA is a strict law requiring greater compliance, Tether already maintains similar compliance in the US by onboarding federal agencies.
However, Tether always hides its transparency data around its reserves and has not done a single audit by an independent auditor.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
