Does Silence Mean Approval? USDT Exec Critiques EU’s MiCA Stance
The post Does Silence Mean Approval? USDT Exec Critiques EU’s MiCA Stance appeared on BitcoinEthereumNews.com.
The European Union’s comprehensive Markets in Crypto-Assets (MiCA) regulation is set to take full effect on December 30, 2024, but uncertainty clouds the compliance status of Tether’s USDT stablecoin, one of the most widely used digital assets globally. Coinbase, a leading U.S.-based cryptocurrency exchange, preemptively delisted USDT from its European services earlier in December 2024, citing MiCA compliance concerns. Other major platforms like Binance and Crypto.com, however, have opted to continue offering USDT in Europe. Uncertainty Around USDT Compliance Despite MiCA’s imminent enforcement, European regulators have not explicitly stated whether USDT meets the new compliance standards. This regulatory silence has left market participants divided. Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s Technical Committee, explained, “No regulators have explicitly stated that USDT is non-compliant, but that does not mean it is compliant.” Source: X This move by Coinbase to delist USDT shows the conservative approach the firm takes toward avoidance of any compliance risk at the last minute. In contrast, other exchanges, including Binance and Crypto.com, remain open for USDT trading as they await further clarity. Potential Impact of Non-Compliance Industry experts warn that USDT’s non-compliance could lead to significant disruptions. Jacob Kinge, a financial analyst, pointed out that Tether has halted new coin issuance in recent weeks, raising concerns about liquidity and transaction costs. “A formal ban on USDT would likely increase costs for traders and disrupt market liquidity,” Kinge remarked. Moreover, Joseph Hurtado, founder of Granata Consulting, noted broader implications: “Restricting USDT could weaken Europe’s position as a hub for cryptocurrency innovation.” MiCA’s Transitional Measures MiCA includes a transitional phase allowing entities operating under national laws to adapt to the new framework. The “grandfathering” clause permits existing service providers to continue operations until July 1, 2026, or until they obtain or are denied MiCA authorization. However,…
Filed under: News - @ December 29, 2024 1:21 pm