In the past few weeks, there has been a lot of discussion about the introduction of the MICA regulatory framework in Europe and its effects on incompatible Stablecoins such as Tether (USDT).
In this article, we see how and to what extent can the new European Union list be repercussions on the future of Tether?
The spoiler: There is not much fear at the present time.
All the details below.
The organizational framework imposes strict rules for Stablecoin Exporters
On December 30, Mika (markets in the assets of encryption) entered into force in Europe, and founded New systems for Stablecoin Exporters.
The controversial European regulatory framework requires companies whose electronic money runs specific licenses under the supervision of the European Banking Authority (EBA). From now on, only accredited banks and financial brokers will be able to trade the distinctive symbol of electronic funds (EMT) and the reference of the assets (ART).
The legislation also places actual limits for those companies, such as Tether, which works with the main headquarters outside the euro area.
MICA requires STABLECOIN exporters Most of their side assets with a European credit institution.
For USDT, this is a big problem, given that about 83 % of Tether reserves are detained In the US Treasury and Monetary Equations.
He showed the same CEO of the company a little prepared to comply with this request, because it means exposing itself to a third party bank.
In Europe, in fact, deposits are guaranteed up to 100,000 euros thanks to the deposit guarantee scheme (DGS), but the amount that the rope should put on the table is much larger.
Not to mention the fact that this approach can prefer potential Depeg, and seriously threatens USDT stability and reliability.
In fact, given the incompatibility of MICA with the Tether’s position, Stablecoin Usdt will become illegal in Europe.
What are the effects of Mika for Usdt?
Given the USDT not compliance with Tether with MICA, many support the idea Exchange of cryptocurrency would spoil Stablecoin.
However, at the present time, this thesis is inaccurate as there was no deletion of the encrypted currency, with the exception of Coinbase (which supports the competition and USDC in the shareholders ’position).
Binance, which represents the largest exchange in the world through trading sizes, has only limited support for USDT; Allow trading, deposits and clouds.
Other leading exchanges in the sector such as Crypto.com, Bybit, Kaken, Bitget, HTX, Mexc and Kucoin did not mention the ability to remove the coin.
Therefore, the stock exchange platforms seem at least now, I decided independently to continue to provide trading services USDT.
This is because Tether’s assets represent the most liquid stablecoin and wide devices in the entire sector, with a strong presence on different Blockchains.
In the coming months, there will remain a possibility that European organizers will pressure the encryption brokers, forcing them to remove USDT from exchanges.
However, so far we are only talking about media speculation, with anything tangible can justify the current FUD campaign against Tether.
The latter is also preparing for the potential impact by relying on the companies compatible with MICA, such as QuantozTo issue a new legitimate currency in Europe.
Tether targets America and Asia after the imposition of Europe
It does not seem to delete or not, to clarify the presence of USDT in Europe and compliance with mica is the main factors for the future of its business.
Already mentioned Bitblaze, The largest market share in Tether is currently in AsiaWhere the regulations are more convenient.
According to recent studies, Asia represents about 60-70 % of annual USDT sizes, with North America in second place with 15-20 %. Below is Europe with 10-15 % of the size and finally Africa by 5-10 %.
Abandoning the European market means losing only a small part of its presence in Stablecoin Crypto sector.
Not to mention the fact that even in a script scenario in Europe, USDT is still trading via DeX by users residing in the euro area.
Moreover, it should be noted how Tether recently decided to enhance its influence in America, given the difficult context of Mika.
Last week, CEO Paulo Erdino announced that he had obtained a license for the DASP service provider in El Salvador.
Thus, Tether has transferred its offices to Nayib Bukele, who is a friend of encryption, which ARDOINO described as “”The beacon of innovation in the area of digital assets“.
The goal of the encryption company is to expand the emerging markets in Central America by enhancing the culture of stock exchanges in Stablecoin.
Tether finds a home
A few weeks back we pointed out that the market cap of $USDT was declining as EU-based crypto exchanges delisted the world’s largest fiat-backed USD stablecoin after the introduction of MiCA, legislation that the token does not comply with because the… pic.twitter.com/zaerJl0f6f— Trakx (@official_trakx) January 22, 2025
Usdt Dei Volumi Di Scambio Stablecoin
Despite the organizational inhibitor of Mika, Tether still represents the most dominant Stablecoin sources in the encryption industry.
Since entering into force from the new American list, the identical value has remained almost identical, with a loss of only 0.37 % in the entire dominance of the market.
As of today, the value of the currency is a total of $ 133 billion, with a The market share is 64.8 % in the stablecoin coding sector.
Since last year, the value of 45 billion dollars has increased, highlighting its success and the strong interest of investors.
Moreover, according to the data on the series that VISA has reported, it seems that Tether with USDT is being relentlessly driving the stablecoin folder for several years so far.
The currency is the most used in this type of transaction, with a very clear gap with the main opponent USDC (stablecoin compatible with MICA).
In particular, since April 2019, there was no month as USDC recorded higher trading sizes compared to USDT.
As of today, its sizes revolve around doubling the USDC and more than 300 times from FDUSD.
