- The EU approved ten stablecoin issuers under MiCA but did not include Tether which led to USDT delisting in the region.
- Crypto exchanges have started removing USDT trading pairs for EU users as MiCA regulations restrict Tether’s operations.
- Tether is expanding outside the EU with new investments in energy and sports while the region enforces strict MiCA rules.
The European Union has approved ten stablecoin issuers under the Markets in Crypto-Assets regulations. It marks a major regulatory shift for the region in its handling of digital assets. The exclusion of Tether USDT, the biggest stablecoin by market capitalization, has raised market implications.
Tether was absent from the list of authorized issuers despite its $141 billion market cap. The approved firms include Banking Circle, Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schumann Financial, Société Générale, StabIR, and Stable Mint. These entities have issued ten euro-pegged stablecoins and five US dollar-pegged stablecoins.
Exchanges Begin Delisting USDT in the EU
Following Tether’s exclusion, several crypto exchanges have started removing USDT trading pairs for EU-based users. The regulatory decision limits Tether’s operations in the region, pushing crypto traders to alternative stablecoins. While the approved issuers comply with MiCA, USDT remains dominant in global markets.
Despite the regulatory setback, Tether is still expanding outside the EU. The company has announced plans to buy a 51% stake in a South African energy firm. This move indicates it has shifted to make broader investments beyond digital assets.
MiCA Regulations Impact Broader Crypto Market
Alongside stablecoin issuers, EU regulators have also approved 11 MiCA-authorized Crypto-Asset Service Providers. These firms operate across Germany, the Netherlands, and Malta, offering trading, exchange, custody, and transfer services.
Regulatory experts warn that strict MiCA compliance requirements could reduce market competitiveness. Some analysts believe the EU’s focus on compliance may discourage foreign firms from entering the market. Others suggest that local crypto businesses might relocate to jurisdictions with fewer restrictions.
The strategic shift of its business is evident with its expansion into traditional industries. Recently, the company has invested in the sports sector, including a partnership with Juventus.
Market participants continue monitoring the impact of MiCA on Europe’s digital asset sector. While the framework provides regulatory clarity, concerns remain about its effect on innovation and market participation.
