Crypto Alert: Every Investor Should Know About Tether’s USDT Delisting

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  • Coinbase delisted USDT when MiCA ‌guidelines came into effect.
  • USDT’s market ‍cap has dropped by $4 billion as insiders called the delisting “Tether FUD.”

In mid-December, crypto exchange Coinbase delisted Tether’s USDT from its platform, citing “non-compliance” with EU crypto regulation MiCA (Markets in Crypto Assets Regulation), one of the strictest crypto standards that came into effect on December 30.

As one of the largest USD-pegged stablecoins by market cap, Tether’s USDT⁤ had the upper hand until recently when the market began to adjust back to MiCA guidelines.

Despite Coinbase’s move, regulators and MiCA compliance advisor ESMA (EU Securities and Markets Authority) have not officially communicated USDT’s compliance status as of this writing.

Binance and other exchanges have reportedly restricted some USDT services for EU users. The exchange’s recent statement reads: “

⁤ ⁣ ““Binance‌ announced its treatment of non-MiCA stablecoins in June 2024 and there will⁤ be no changes until further notice.
⁢ USDT will continue to be supported for custody; deposits and withdrawals are not affected.
We recommend ⁢users use USDC and‍ EURI as these are MiCA compliant stablecoins.”. So does ESMA’s silence mean USDT might be non-compliant?

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