Despite the recent delisting of Tether’s USDT stablecoin by Coinbase for its European customers, several major cryptocurrency exchanges across Europe are continuing to support USDT. This decision comes as the exchanges navigate the impending regulatory changes under the Markets in Crypto-Assets Regulation (MiCA), which is set to be fully implemented on December 30.
Following Coinbase’s announcement to drop USDT on December 13 due to upcoming MiCA regulations, prominent exchanges like Binance, Crypto.com, and Kraken have decided to continue offering USDT trading to their European clientele. Other platforms such as KuCoin, MEXC, and Bitget also persist in making the stablecoin available, demonstrating a varied response to the regulatory landscape.
Exchange Responses to MiCA
Coinbase, a United States-based exchange, cited compliance with MiCA as the primary reason for its suspension of USDT trading in Europe. Meanwhile, other exchanges have not publicly aligned with Coinbase’s stance. For example, OKX revealed that it had delisted USDT in March 2024, shifting its focus toward euro-based trading pairs, although it still features USDT on its platform along with a prioritization of EUR and USDC spot trading pairs for the European Economic Area (EEA).
Bitpanda, on the other hand, has not publicly commented on its future plans regarding USDT. With the final MiCA deadline looming, these exchanges have a narrow window to make final decisions about their handling of USDT and other affected assets.
MiCA’s stablecoin regulations have been in partial effect since June, focusing on transparency, stability, and compliance. As the full regulatory framework is about to take effect, exchanges operating in Europe face crucial strategic decisions that could influence their market positioning and operational compliance.
| Exchange | USDT Trading Status | Notes |
|---|---|---|
| Binance | Continued | Maintaining support for USDT |
| Crypto.com | Continued | Maintaining support for USDT |
| Kraken | Continued | Maintaining support for USDT |
| Coinbase | Suspended | Compliance with MiCA |
| OKX | Available | Prioritizes EUR and USDC |
| Bitpanda | No Comment | Unclear future plans |
As MiCA aims to enhance consumer protection and financial stability, the divergent approaches by exchanges reflect their individual assessments of regulatory impacts and their strategies for maintaining service continuity and compliance. The variations in responses also highlight the challenges in interpreting and implementing regulatory requirements, which can differ significantly across jurisdictions.
Author’s Opinion
The mixed responses from cryptocurrency exchanges regarding the MiCA regulations signify a broader uncertainty within the European crypto market. As some platforms choose to proactively delist USDT to align with anticipated legal demands, others opt to maintain their offerings, underscoring the resilience and adaptability of the crypto industry. This situation sheds light on the ongoing challenges that regulatory bodies face in standardizing rules that accommodate the dynamic nature of digital currencies while ensuring market stability and consumer protection. As the deadline approaches, the actions taken by these exchanges will likely serve as a litmus test for the effectiveness of MiCA and its impact on the European crypto landscape, potentially setting precedents for future regulatory endeavors worldwide.
Featured image credit: Satheesh Sankaran via Vecteezy
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