Can Europe Overcome Tether's Delisting Signals for USDT?

Bittime - Uphold announced the delisting of Tether and five other stablecoins ahead of the implementation of the European Union's strict MiCA regulations. The article discusses the impact of USDT and USDC dominance and regulatory implications on the global crypto market.

Uphold Announces Tether Removal?

Famous New York cryptocurrency exchange Uphold announced the delisting of six stablecoins in response to the European Union's upcoming MiCA regulations. This includes the largest Tether (USDT) group.

The Markets in Crypto Assets (MiCA) Regulations, which will come into full force on 30 June 2024, support this decision. These regulations are so strict that all digital assets must comply. However, this raises concerns regarding USDT's prospects in the region.

What is Wrong with The MiCA and Tether (USDT) Regime?

Due to the dominance of USDC and USDT on centralized exchanges, short-term effects could lead to dislocation of liquidity and trading markets, said Tim Wang. Elixir executives said that a medium-term solution may be necessary in case the European Union decides to no longer participate in facilitating the crypto market.

Additionally, Wang stated that since Euro stablecoins have not gained significant adoption, US dollar-backed assets and stablecoins remain the main collateral options in the crypto market. One of the main characteristics of MiCA is 1:1 support of fiat-based stablecoins with liquid reserves, segregation of reserve assets as needed as well as algorithmic prohibition of stablecoins.

EU MiCA Regulation Serves as a Model for Crypto Laws in Other Countries

The upcoming EU MiCA regulation could serve as a model for crypto laws in other countries, such as the US. However, regulations relating to stablecoins may not be as important. Wang argued that stablecoin regulation will become more complex as “stablecoin hegemony” will become a controversial political subject, as mentioned by the former president.

Conclusion

In response to the European Union's strict MiCA regulations that will take effect on June 30, 2024, Uphold announced the delisting of Tether and five other stablecoins. MiCA emphasizes the importance of regulatory compliance in the global crypto market by requiring fiat-based stablecoins to hold 1:1 liquid reserves and prohibiting the use of value stabilization algorithms. Meanwhile, the dominance of USDT and USDC currencies may experience disruption, which could impact liquidity and trading dynamics.

How To Buy Crypto With Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.