The implementation of the Markets in Crypto Assets (MiCA) regulation in the European Union introduces new requirements for stablecoin issuers and cryptocurrency exchanges. According to MiCA, all stablecoins listed on EU exchanges must be issued by licensed entities. The company Tether, the issuer of the USDT stablecoin, has not yet obtained such a license, leading to the delisting of USDT on European exchanges.
Key Aspects of MiCA and USDT Delisting:
• Licensing Requirements: MiCA requires stablecoin issuers to obtain licenses to offer their services within the EU. Without this license, stablecoins cannot be legally traded on European exchanges.
• Compliance Deadline: Cryptocurrency exchanges in the EU must remove stablecoins that do not comply with MiCA by December 30, 2024. This means USDT will no longer be available for trading on these platforms after that date.
• Impact on Users: Users holding USDT are not required to dispose of their assets. However, they will face restrictions in using USDT on European exchanges, which could affect liquidity and availability of the stablecoin in the region.
• Alternative Stablecoins: Some issuers, such as Circle (issuer of USDC), have already obtained the necessary licenses, making their stablecoins available for trading in the EU. Users may consider using such alternatives.
Recommendations for Users:
• Consider Alternatives: Consider converting USDT into other stablecoins that comply with MiCA to ensure smooth usage on European exchanges.
• Stay Updated: Regularly check for updates from exchanges and stablecoin issuers regarding their compliance status with MiCA so you can respond to changes in a timely manner.
• Consult Experts: If necessary, consult financial advisors for recommendations tailored to your specific situation.
Thus, the MiCA law does not require users to dispose of USDT, but it imposes restrictions on its use within European exchanges. It is recommended to prepare in advance for these changes to minimize potential inconveniences.
Exchanges Covered by MiCA (Markets in Crypto Assets):
All cryptocurrency exchanges officially registered and operating within European Union countries must comply with MiCA regulations. This means they must:
• Meet licensing standards,
• Provide reports,
• Remove stablecoins that do not meet MiCA requirements from their listings.
Examples of Exchanges Covered by MiCA:
1. Binance Europe (European subsidiary)
2. Bitstamp (registered in Luxembourg)
3. Kraken (has representation in the EU)
4. Coinbase (European version of the platform)
5. Uphold
6. OKX (in the EU)
Examples of Exchanges Not Covered by MiCA:
1. Binance Global (outside the EU)
2. Bybit (headquarters in Dubai)
3. KuCoin (operates globally, registered in Seychelles)
4. Gate.io (registered in Asia)
5. MEXC
6. Bitget
It is also important to note that if you are not an EU citizen but are located within the EU, MiCA law applies to you as well. What to do? There are two options:
1. Convert USDT to USDC.
2. Withdraw USDT to cold wallets or other wallets. You will be able to exchange this stablecoin for cryptocurrency or another stablecoin when you are outside the EU.
