EU Crypto Licensing Deadline Leaves USDT Without Foothold
The European Union's transitional period for crypto licensing has come to an end, effective July 1. This means that only about 194 firms have secured a MiCA license out of over 3,000 that were once registered across the region.
USDT, the largest stablecoin with around $175 billion in value, is no longer available on any licensed EU venue. Major exchanges such as Binance, Coinbase, Kraken, and Crypto.com have already delisted USDT for European users, citing Tether's refusal to seek authorization.
France has taken a particularly hard stance against unlicensed firms, threatening prison sentences of up to two years and fines of 30,000 euros for companies that continue to serve EU customers without a license after the cutoff. Marie-Anne Barbat-Layani, chair of France's markets regulator, noted that any firm without a license has effectively missed the window, as securing one requires months of regulatory review.
Circle's USDC and EURC stablecoins are among the few top-ten stablecoins with full MiCA clearance, putting them in a favorable position to gain market share from the reshuffle.