USDT Loses EU Foothold as MiCA Deadline Hits July 1

The European Union's Markets in Crypto-Assets (MiCA) framework has reached its deadline of July 1, forcing most unlicensed crypto exchanges out of the EU market. This includes Tether's USDT stablecoin, which is no longer available on any licensed EU venue.

According to the MiCA framework, only about 194 companies had secured a license by May 2026, while over 3,000 firms once held national registrations across the region. Supervisors expect around 75% of those older firms to lose their right to serve EU clients.

Tether's USDT is at the center of the upheaval, with major exchanges like Binance, Coinbase, Kraken, and Crypto.com pulling it for European users after the company declined to seek authorization. France has taken a particularly hard line, threatening prison sentences and fines for unlicensed firms still serving EU customers.

Circle's USDC tokens stand to gain from the reshuffle, as they are the only top-ten stablecoins with full MiCA clearance. Tether has refused to comply with the reserve rules behind its exit, citing incompatibility with its model.