USDT Restrictions in Europe: Causes and Consequences
Date: 2024-12-06 Author: Gabriel Deangelo Categories: IN WORLD
European laws, such as MiCA (Markets in Crypto-Assets Regulation), impose strict requirements on cryptocurrencies, including stablecoins. According to MiCA, stablecoin issuers are required to keep 60% of their reserves in European banks. For Tether, which issues USDT, this means the need to place $81 billion out of a total of $135 billion, which is not yet being done. In addition, issuing companies must obtain special licenses and provide a "White Paper" - technical documentation describing the technology, risks, and other aspects of the project.
Cryptocurrency exchange Coinbase has decided to exclude USDT from available assets for users from the European Union in order to comply with MiCA requirements and avoid legal problems. Such actions affect only EU users; customers from other countries can continue to use the stablecoin without restrictions.
It is worth noting that Coinbase is not the only exchange that has restricted access to USDT in Europe. Uphold, OKX, and Bitstamp have already taken similar steps, and Kraken is considering delisting. The reason is always the same - compliance with European regulations.
Not all stablecoins face such difficulties. For example, USDC, issued by the American company Circle, fully complies with MiCA requirements and continues to be actively used in the EU.
Tether, in order to maintain a presence in the European market, is already taking steps to adapt. The company has stopped supporting the EURT stablecoin and plans to focus on new EURQ and USDQ tokens developed by the Dutch Quantoz Payments, which comply with MiCA requirements.
For Russian users, the changes are almost imperceptible. Most international exchanges, such as Coinbase and Bitstamp, are no longer available in Russia due to sanctions.
As for Tether, the loss of part of the European market may weaken its position, but there is no need to talk about a global collapse. USDT remains the largest stablecoin in the world and continues to dominate the market despite local restrictions.
European regulations are tightening conditions for crypto issuers, forcing exchanges to impose restrictions on stablecoins. However, Tether is actively looking for ways to comply with the new rules, and users in other regions continue to use USDT without changes.
