Tether Raises Concerns Over MiCA-Driven Delistings in Europe

Tether's Response to MiCA-Driven Delistings

Tether, the issuer of the widely-used USDt stablecoin, has expressed concerns over the recent delistings of its token by major cryptocurrency exchanges in Europe. These actions are in response to the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which is reshaping the region’s crypto market.

Crypto.com announced the removal of USDt and nine other tokens on January 31, 2023, to comply with MiCA. Tether criticized the swift and unclear decisions by exchanges, warning that such moves could destabilize the market and pose risks to EU consumers. The company emphasized that the delisting of stablecoins like USDt could lead to a "disorderly" market, particularly as MiCA is still in its early implementation phase.

Impact on the European Crypto Market

Other major exchanges, such as Coinbase, have also taken steps to comply with MiCA. Coinbase delisted six tokens in December 2024 and an additional two by January 30. While the exchange has committed to reassessing stablecoins that achieve MiCA compliance in the future, the current restrictions are raising concerns about market stability.

Tether’s Strategy Moving Forward

Despite the challenges posed by MiCA, Tether is actively working on a compliance strategy for USDt in Europe. The company acknowledges the complexities introduced by the new regulations but remains committed to ensuring its stablecoin operations align with evolving EU requirements. Tether is also investing in new technologies and projects designed to meet MiCA standards, demonstrating its dedication to maintaining a strong presence in the European market.

The European Securities and Markets Authority has urged crypto service providers to restrict non-compliant stablecoins by the end of January, with full restrictions set to take effect by the end of the first quarter of 2025. However, tokens can still be listed in sell mode until March 31, providing some flexibility during the transition period.

Tether’s concerns highlight the broader implications of MiCA for the crypto industry, as companies navigate the regulatory landscape to ensure compliance while mitigating risks for consumers and the market.