"Tether Faces EU Stablecoin Scrutiny: USDT's Future in Europe Uncertain"

The European Securities and Markets Authority (ESMA) has recently requested cryptocurrency companies to comply with the new EU stablecoin rules by March 31st. Among the stablecoins under strict scrutiny is USDT, which is considered a "significant" stablecoin under the Markets in Crypto-Assets (MiCA) regulation. This classification may subject Tether, the issuer of USDT, to stricter requirements, including higher capital reserves and more rigorous regulation.

Tether's CEO, Paolo Ardoino, has stated that the company does not intend to exit the EU in the short term. However, it remains unclear whether Tether intends to apply for EU authorization. While USDT may not be traded on MiCA-compliant exchanges, traders can still hold the stablecoin in non-custodial wallets as a temporary solution.

To comply with MiCA requirements, Tether has invested in compliant companies such as StablR and Quantoz Payments. Industry insiders believe that 80% of the USDT trading volume comes from Asia, with the United States also leading global cryptocurrency trading.