EU Crypto Shake-Up: Tether Takes a Hit Amid New MiCA Regulations
by aria-crypto.com
January 31, 2025 at 04:39
EU Crypto Shake-Up: Tether Takes a Hit Amid New MiCA Regulations
The implementation of the EU's Markets in Crypto-Assets (MiCA) regulations has triggered significant changes in the cryptocurrency landscape, particularly for stablecoins like Tether's USDT.
With MiCA now in effect, several major exchanges, including Crypto.com and Coinbase, have delisted USDT from their platforms in the Eurozone, aligning with new regulatory standards.
The European Securities and Markets Authority (ESMA) has warned that removing USDT could disrupt the market but gave platforms until the first quarter of 2025 to comply with the regulations.
Tether's CEO, Paolo Ardoino, criticized the delisting, suggesting it could decrease liquidity and increase systemic risks in the banking and digital asset sectors.
However, proponents of MiCA argue that the regulations will enhance operational efficiency for crypto businesses across European markets through a single registration process.
Marina Markezic, European Crypto Initiative co-founder, praised MiCA's potential to revolutionize market access and spur innovation by simplifying entry for blockchain projects.
Experts also compare MiCA to Switzerland’s accommodating framework for technology, though some, like Web3 partner Andreas Glarner, doubt the EU can match Switzerland’s success under the current regulatory burden.
The compliance-first approach advocated by leaders like Ivan Bjelajac, CEO of the Apex Fusion Foundation, aims to balance innovation with regulatory demands, ensuring a secure and transparent blockchain ecosystem.
Despite the challenges, the evolving EU framework under MiCA presents a transformative era for both compliance and opportunity within the European crypto space.
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