On the 30th of December 2024, the ban on Tether (USDT) the biggest stablecoin issuer in Europe is expected to take effect.
This means that top exchanges in Europe from that date would begin the delisting of Tether (USDT) to uphold MICA’s compliance.
This move is seen as a huge blow to the crypto industry as Tether (USDT) for the past 5 years has remained the third largest crypto asset by market capitalization.
Tether also has the largest share of the stablecoin market making up over 50% of the global market share.
The stablecoin issuer is facing a possible ban in Europe following issues of compliance with Europe’s Market in Crypto Assets Regulation. Coinbase America’s largest crypto exchange already delisted Tether and other Top exchanges are expected to follow.
Analyst Knocks EU MICA Laws on Crypto
Rume Ophi a renowned crypto market analyst shared his opinions on the MICA vs Tether Spat stressing that MICA’s regulatory framework is actually a nightmare for the crypto industry.
In a private chat with Nairametrics, Rume explained that MICA’s requirement is a net negative for the crypto market and sees a reason why Tether is refusing to budge.
“Mica requires 60% of the reserve to sit in low-risk bank-held assets. Firstly, the industry is not designed to prosper in this way. It is also banning payment yield to users. This is terrible, to say the least.
By Forcing reliance on the Legacy Banking system Mica risks disrupting liquidity flow. This actually happened when the Silicon Valley Bank collapsed and USDC was terribly affected.
It is known that Europe enjoys regulation, but this regulation is nothing to go about and no jurisdiction should emulate the EU”, Rume stated
Rume added that the European Market can be a foregone alternative for Tether given that it contributes a negligible share to the global market.
He explained that Tether USDT and Circle USDC control 80% of the global stablecoin market share amounting to over $208 billion.
The alternative to both stablecoins is a Euro-backed stablecoin which is sadly not among the top 100 crypto assets by market cap.
This means Tether can afford to shoulder the Europe Ban and still remain relevant in the industry.
Rume Ophi mirrored the above statements on an appearance on Channels TV adding that the crypto market in Q1 2025 could be up to a slow start contrary to widely held beliefs the market will pump.
What is MICA?
MiCA (Markets in Crypto-Assets) is a regulatory framework developed by the European Union to establish clear rules and guidelines for the crypto-asset industry across all EU member states.
It aims to create a unified legal framework for the issuance, trading, and operation of crypto-assets and related services.
What to Know
- MICA is a great example of the over-regulation European jurisdictions have been accused of for quite some time now. Many Analysts have called out the heavy-handed regulatory policies coming out from European jurisdiction and the threat it poses to innovation and the free market.
- Tether’s CEO Paolo Ardoino dismissed Tether FUD on the internet calling it a coordinated attack by supposed rivals of the stablecoin company.
