USDT Loses Last EU Foothold as MiCA Deadline Hits July 1
The European Union's MiCA (Markets in Crypto-Assets) regulatory framework has reached its deadline, marking the end of the transitional period for crypto firms to obtain a license. The grace period expires on July 1, leaving about 75% of unlicensed companies without the right to serve EU clients.
As a result, Tether's USDT stablecoin is no longer available on licensed EU venues, with Binance, Coinbase, Kraken, and Crypto.com among those that have delisted it for European users. The largest stablecoin at around $175 billion, USDT had been central to the upheaval.
France has taken a particularly hard line, threatening unlicensed firms with criminal charges, including up to two years in prison and a 30,000 euro fine. Marie-Anne Barbat-Layani, chair of France's markets regulator, stated that companies have 'run out of road' after missing the deadline for securing a license.
Circle's USDC tokens stand to gain from the reshuffle, with full MiCA clearance and 14 firms holding authorization to run trading platforms across the bloc. Tether has refused to comply with the reserve rules behind its exit, citing incompatibility with its model.