Jonnie Aaron
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USDT (Tether) is not banned in the European Union, but new regulatory requirements are impacting its use. Under the Markets in Crypto Assets (MiCA) regulation, which comes into effect on December 30, 2024, stablecoins listed on centralized exchanges must be issued by entities with an electronic money license. Since Tether currently does not have such a license, some European exchanges have already started to exclude USDT from their platforms in order to comply with the new rules.
These measures could affect market liquidity and convenience for traders, as USDT is one of the most popular stablecoins in the world. Alternative stablecoins, such as Circle’s USDC, which already have the necessary licenses, could become mainstream trading instruments in the EU.
So, while $USDT is not banned in Europe, its use on regulated platforms will be limited due to the new regulatory requirements.
These measures could affect market liquidity and convenience for traders, as USDT is one of the most popular stablecoins in the world. Alternative stablecoins, such as Circle’s USDC, which already have the necessary licenses, could become mainstream trading instruments in the EU.
So, while $USDT is not banned in Europe, its use on regulated platforms will be limited due to the new regulatory requirements.
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