Following the upcoming MiCA’s measures regarding stablecoin regulation, Coinbase crypto exchange decided to terminate support for USDT stablecoin.
As we know, the European Union (EU)’s crypto market is now under a full regulatory framework under the umbrella of Markets In Crypto Assets (MiCA). The stablecoin regulatory measures will come into effect on 30 Dec 2024, so all the crypto exchanges have decided to take significant steps to terminate support for all the stablecoins which do not fit under MiCA’s criteria for stablecoin regulation.
In the latest developments, global crypto exchange Coinbase announced that they will remove support for the top stablecoin Tether ($USDT) in order to remain in compliance with MiCA.
Obviously, this will be a very shocking move for Tether stablecoin, as it has been ranked in the first position across the whole crypto market.
The delisting of Tether ($USDT) by Coinbase is expected to have a significant impact on the liquidity of the crypto market in the EU. As one of the largest stablecoins by market capitalization, Tether has been widely used for trading and as a bridge between cryptocurrencies and fiat currencies.
Tether CEO Paolo Ardoino reassured that they are working on a new tech solution to overcome these regulatory limitations.
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The company stated:
“Tether is developing a technology-based solution, which we will unveil in due course and will be tailor-made to serve the necessities of the European market. We’re very excited about our upcoming product strategy.”
Circle Stablecoin
Circle ($USDC), the biggest rival of Tether, is MiCA compliant, meaning it will not be delisted or suspended by any crypto platform within the jurisdiction of EU member countries.
Currently, Ripple stablecoin (RLUSD), which will be launched next year, advocates are bullish about its potential chances of rapid success & sudden adoption of $RLUSD in the EU crypto market.
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