The Future of #USDT🔥🔥🔥 in Europe: What You Need to Know. Navigating MiCA's Transitional Measures
According to QuintenFrancois, there has been considerable Fear, Uncertainty and Doubt regarding the status of $USDT in Europe. Contrary to certain rumors, $USDT will not be rendered illegal in Europe as of December 30, 2024. The new Markets in Crypto-Assets (MiCA) regulations will mandate compliance, but there is a transition period of 6 to 18 months for providers to adapt to these new rules. Some exchanges have chosen to preemptively #delisting $USDT in anticipation of these regulations. 😊📈
MiCA's Transitional Measures
MiCA provides a transitional period for entities operating under national regulations to adjust to the new framework. The "grandfathering" provision allows current service providers to continue their operations until July 1, 2026, or until they receive or are denied MiCA authorization. However, the duration of this transitional phase differs by country, ranging from six months in the Netherlands to 18 months in France.
Possible Consequences of Non-Compliance
Industry professionals caution that the non-compliance of USDT may cause considerable disruptions. Financial analyst Jacob Kinge highlighted that Tether has recently stopped issuing new coins, which raises concerns about liquidity and transaction costs. Kinge stated, “An official ban on USDT would probably escalate costs for traders and interfere with market liquidity.”
Additionally, Joseph Hurtado, founder of Granata Consulting, emphasized broader consequences: “Imposing restrictions on USDT could diminish Europe’s status as a center for cryptocurrency innovation.”
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