The MiCA regulation (Markets in Crypto-Assets) of the European Union is generating significant changes in the use of stablecoins like USDT. Here I summarize the key points about when USDT will stop being used in Europe:
* Deadline:
* March 31, 2025 is the deadline for regulated exchanges within the European Union to stop operating with USDT. This is because USDT does not meet the requirements of the MiCA law.
* Reason for exclusion:
* The MiCA law requires transparency in reserves and audits of stablecoins. USDT currently does not meet these requirements.
* The MiCA law seeks financial stability, transparency, and utility in the European market.
* Implications for users:
* USDT users in Europe will need to consider alternatives like USDC, which complies with the MiCA regulation.
* Users will be able to exchange their USDT for other stablecoins or euros before the deadline.
* What will happen to USDT outside of Europe?
* This regulation only affects regulated exchanges within the European Union. USDT can continue to be used outside the EU.
In summary, the MiCA law is driving a shift towards more regulated and transparent stablecoins in Europe, which will result in the exclusion of USDT from regulated European exchanges starting March 31, 2025.
