As of December 28, 2024, there have been significant developments regarding the listing of Tether's USDT stablecoin in Europe, primarily influenced by the European Union's Markets in Crypto-Assets (MiCA) regulation, which is set to be fully enforced on December 30, 2024.
Coinbase's Actions:
Coinbase Europe, along with its German and Custody International branches, delisted USDT and five other stablecoins on December 13, 2024. This decision was made to comply with MiCA's requirements. Coinbase continues to support USD Coin (USDC) and the euro-pegged EURC, both of which meet MiCA's compliance standards. The exchange has indicated that it will consider re-enabling services for stablecoins that achieve MiCA compliance in the future.
Other Exchanges:
Despite Coinbase's actions, other major cryptocurrency exchanges in Europe, such as Binance, Crypto.com, and Kraken, continue to list USDT on their platforms. These exchanges have not announced any immediate plans to delist USDT, even with the MiCA enforcement deadline approaching. For instance, Kraken has stated that it has "no plans" to delist USDT in Europe at this time and will continue to monitor regulatory developments.
Tether's Position:
Tether has expressed its commitment to the European market and is working on strategies to comply with the evolving regulatory landscape. The company has criticized the "rushed actions" of certain exchanges that have delisted USDT prematurely, suggesting that such decisions may be based on self-interest or superficial analyses. Tether remains confident in its ability to navigate these regulatory changes and continue its operations in Europe.
Regulatory Context:
MiCA introduces specific requirements for stablecoin issuers operating within the European Economic Area (EEA), including obtaining an e-money license and adhering to reserve requirements. These regulations aim to ensure financial stability and consumer protection within the crypto-asset market. Exchanges and issuers are adjusting their operations to align with these new standards, leading to varying responses regarding the listing and support of stablecoins like USDT.
Conclusion:
While Coinbase has proactively delisted USDT in anticipation of MiCA's full implementation, other exchanges are maintaining their support for the stablecoin as they assess the regulatory environment. Tether is actively working towards compliance to continue its presence in the European market. Stakeholders should stay informed about further developments as the December 30, 2024, enforcement date approaches.