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Tether Lashes Out at European Regulators' "Rushed" USDT Delistings

Coin WorldThursday, Jan 30, 2025 10:13 am ET

1min read

Tether, the issuer of the world's largest stablecoin, USDT, has expressed disappointment with the "rushed actions" taken by European regulators in delisting USDT from various exchanges in the region. This move comes amidst the implementation of the Markets in Crypto-Assets (MiCA) regulatory framework, which is set to come into effect in late 2024.

The delistings, which began in early 2023, have been driven by concerns over the lack of clarity regarding Tether's reserves and the potential risks associated with USDT. However, Tether has maintained that its stablecoin is fully backed by reserves and has consistently provided audited financial statements to support this claim.

In response to these delistings, Tether has been working with European regulators to address their concerns and ensure compliance with the upcoming MiCA regulations. The company has also been engaged in discussions with various exchanges to find alternative solutions that would allow USDT to continue trading in the region.

Meanwhile, other stablecoin issuers have been taking proactive steps to ensure compliance with MiCA. Venga, a European crypto-app, has made a pre-application for MiCA licensing with the national regulatory body of Spain, CNMV. This move is part of Venga's strategy to fortify its compliance with regulatory practices and remain one of the most prestigious crypto-service providers in the European Union.

The MiCA regulatory framework is expected to bring unification, clarity, and safety to the European Union's crypto market. However, the implementation of these regulations has raised concerns among some industry players, who argue that the transition period is too short and may lead to disruptions in the market.

Tether's disappointment with the "rushed actions" taken by European regulators highlights the challenges faced by stablecoin issuers in navigating the complex regulatory landscape. As the crypto industry continues to evolve, it is crucial for regulators and industry players to work together to ensure a balanced approach that promotes innovation while protecting consumers and investors.

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