Michaela Alvez
U.S.-based cryptocurrency exchange Coinbase has moved to delist Tether (USDT) for European Union customers, citing compliance concerns with the EU’s Markets in Crypto-Assets (MiCA) regulations. Experts, however, argue that the decision appears unusual and potentially premature.
As the EU’s MiCA regulations impose stricter compliance requirements on stablecoin issuers, concerns over USDT’s ability to meet these standards have sparked speculation about its future in the region. Earlier this month, Coinbase announced it would delist USDT for its European customers, with its implementation on December 30.
Coinbase’s decision has sparked considerable debate, with some praising the exchange for taking a proactive approach, while others argue that Tether’s future should be decided through official rulings from EU regulators.
Despite Coinbase’s decision, major exchanges like Binance and Crypto.com continue to offer USDT, and are awaiting further guidance from regulators on the stablecoin’s status.
MiCA sets strict requirements for stablecoin issuers, including the need for e-money licenses, independent reserves held in recognized banks, and comprehensive disclosure practices. However, the European Securities and Markets Authority (ESMA) has yet to determine whether Tether meets these criteria.
Critics Cry FUD
FUD, an acronym for “fear, uncertainty, and doubt,” refers to the spread of negative or misleading information intended to create fear or confusion about a particular topic, often in order to manipulate public perception or market behavior.
Samson Mow, CEO of the Bitcoin technology company Jan3, responded to Coinbase’s decision in a post on X.
In his post, Mow suggested that Coinbase’s decision to delist USDT was influenced by its partnership with Circle, the company behind USD Coin (USDC), a direct competitor to Tether.
Additionally, Mow noted that under the MiCA regulations, exchanges and stablecoin issuers have more than 12 months to comply, indicating that there is no urgent need to delist non-compliant stablecoins like USDT at this time.
“For the FUDsters, which exchanges have announced the delisting of USDT for European users? The answer is only Coinbase,” Mow wrote, challenging those spreading fear about USDT’s future in Europe.
Tether CEO Paolo Ardoino also weighed in, reassuring readers that the company’s stablecoin remains secure and is not facing immediate challenges under the European Union’s MiCA regulations.
Ardoino urged people not to fall for the FUD, echoing Mow’s view that competitors of Tether may be spreading rumors or negative narratives to damage USDT’s reputation.
Read More
- Coinbase Faces Backlash Over Account Restrictions, Poor Support
- EU’s MiCA Forces Coinbase to End USDC Yield Program
- Coinbase Delists Wrapped Bitcoin: A Power Play or a Necessary Move?
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
