As a seasoned researcher who has closely followed the crypto market for years, I find Tether’s decision to discontinue EURT intriguing, yet not surprising given the impending MiCA regulations. The European Union’s stance on stablecoins is indeed a game-changer, and it seems that even giants like Tether aren’t immune to the regulatory tide.
Tether, a well-known stablecoin provider, is ceasing the issuance of EURT due to the new MiCA regulations from the EU. However, they have chosen to invest in other stablecoins that comply with MiCA and continue generating income from the European market.
Multiple rivals see MiCA as a chance to challenge Tether’s supremacy in EU stablecoins, and the company acknowledges that it may lose some ground in this competition.
Tether Reacts to MiCA
This morning, Tether, a well-known stablecoin, announced on social media platforms that it will no longer offer EURT (Euro-backed token). In a blog post, the company explained their decision, stating they’ve ceased producing EURT. They also mentioned that EURT token holders have one year to exchange or redeem their tokens.
This choice follows our wider strategic plan, taking into account the changing regulatory landscape for stablecoins within the European market. Since a safer regulation system hasn’t been established yet, one that encourages innovation and ensures the safety and security our users require, we have decided to focus on other projects first.
Essentially, Tether opted for this course of action due to a single significant factor: the forthcoming Markets in Crypto Assets (MiCA) law within the European Union. This legislation is poised to revolutionize crypto regulations across the EU, and it will significantly alter stablecoin operations. Previously in September, several major firms viewed MiCA as an opportunity to challenge Tether’s influence in Europe.
Competitors have started introducing MiCA-compliant stablecoins into the EU market; the first one was launched in September, and yesterday, Schuman Financial – a company founded by ex-Binance EU executives – introduced its own asset. Similarly, other cryptocurrency sectors are leveraging MiCA, with Revolut X broadening their European trading operations earlier this month.
While it’s true that the EURT (Euro Tether) has been phased out, this doesn’t necessarily mean Tether is stepping away from the stablecoin market. In fact, as a researcher delving into these matters, I can confirm that Tether has recently shown significant interest in other areas. To be precise, they are a major investor in a MiCA-compliant stablecoin project by Quantoz. Furthermore, Tether has been promoting Hadron, their innovative solution designed to assist issuers in developing and managing stablecoins effectively.
Essentially, Tether is strategically pulling back from the European market instead of conceding defeat completely. They’re still generating income through MiCA-compliant stablecoins and have the option to return in the future. At present, they have ample resources to manage the current situation.
Read More
- VVAIFU PREDICTION. VVAIFU cryptocurrency
- EUR INR PREDICTION
- Tom Holland Teases a Completely Different ‘Spider-Man 4’: “The idea is crazy.”
- ‘It Gets Harder And Harder To Write Science Fiction’: James Cameron Addresses The Challenges Of Sci-fi Genre
- General Hospital Spoilers: Will Sasha Let Robert Scorpio Into Her Life?
- Coinbase Acquires BUX’s Cyprus Unit, Signaling Potential Entry into CFDs
- Ariana Grande Recalls Meeting Her Idol Imogen Heap for the First Time: ‘I Thought I Was Being Catfished’
- Why Is Drew Barrymore So Touchy On Her Talk Show?
- Face To Face With Scott Peterson TRAILER Shares New Look At Infamous Crime 20 Years After Suspect’s Sentencing
- Some ‘The Acolyte’ Supporters Push to Cancel YouTubers Over Alleged “Harassment”
2024-11-27 19:16