- Tether might be exiting Europe due to the transparency demands of the MiCA regulations.
- The market remains steady as USDT retains a robust market cap and trading volume.
Tether (USDT) could delist from the EU’s exchanges due to rising regulatory pressures within the MiCA policies. These are strict licensing and transparency requirements imposed for stablecoin that USDT has failed to meet. This failure and past legal issues, such as the $41 million settlement with the CFTC over reserve incorrectness, have fueled EU exchanges’ move to remove Tether.
There are also speculations that USDT may not be legitimate after December 30, 2024, when MiCA regulation is set to take effect. However, according to the analysts of EU crypto investors, traders can still hold the USDT in non-custodial wallets, and it’s not illegal under the new regulation.
See Related: Canada Forces CryptoCom To Delist USDT; Saying It Constitutes ‘Securities And Or Derivatives’
Will This Affect the Market?
The potential exit has brought fear, uncertainty, and doubt among investors. Crypto market traders who rely heavily on USDT for trading and liquidity have begun questioning the stablecoin’s future.
There are projections that if Tether were to exit the EU market, the move could impact traders. They could experience liquidity shifts and instability in trading pairs such as ETH/USDT and BTC/USDT.
However, Axel Bitblaze, a crypto investor, analyst, and NFT enthusiast, shared a different outlook yesterday. He held that, like Tether FUD’s past events, this potential delisting may not cause a market crash but present a promising buying opportunity.
In fact, Bitblaze encouraged investors to remain confident as USDT has credible records of bouncing back and because the stablecoin market is still strong.
“USDT is the largest stablecoin, with a market cap of $138.5B and a daily trading volume of $44B. As of today, 80% of USDT’s trading volume comes from Asia, so the EU delisting won’t have any severe impact,” Bitblaze said.
He pointed out that an event that is believed to potentially have a negative impact on USDT could be more bullish than bearish.
