Home » Altcoins

Is Tether’s Delisting in Europe a Threat to Crypto Stability?

28.12.2024 10:00 1 min. read Kosta Gushterov
SHARE: SHARES
Is Tether’s Delisting in Europe a Threat to Crypto Stability?

As Europe enforces stricter cryptocurrency regulations, Tether, the largest stablecoin with a market cap of $139.28 billion, faces potential upheaval.

Unlike the U.S., where crypto policies remain ambiguous, Europe’s Markets in Crypto-Assets (MiCA) framework requires stablecoins like Tether (USDT) to hold an e-money license. Failing to meet this requirement, Tether risks being delisted from European crypto exchanges by December 30, 2024.

This delisting could disrupt the market, particularly given Tether’s integral role in crypto transactions and USDT pair trades. Liquidity shortages, coupled with shaken investor confidence, might lead to a broader market downturn. While Tether’s dominance has recovered slightly since March, critics argue it remains vulnerable, with some describing it as a “ticking bomb.”

Adding to the tension, recent reports indicate Tether has paused minting activities for over two weeks, sparking further speculation about its stability. Critics, including venture capitalist Jason Calcanis, have accused Tether of operating without adequate transparency, labeling it a financial risk. Despite this, Tether’s CEO dismissed the criticism as unwarranted fear-mongering and expressed confidence in the token’s future.

As Europe moves forward with its ban, its impact will primarily affect European investors and exchanges, but the ripple effects could extend globally. The December deadline looms as a critical moment for Tether and the broader cryptocurrency market.

Telegram

SHARE: SHARES
More Others News

Support CryptoDNES

QR for the Bitcoin/Ethereum Address:

QR for the Bitcoin/Ethereum Address:

No Comments yet!

Your Email address will not be published.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.