Nervousness in the crypto market seems to accelerate with the impending ban of the stable coin USDT in the European Union. As of December 30 trading with this token in the EU becomes illegal as it does not fit into the MiCA regulations. The giant of the cryptocurrency world was not able to adapt to the standards on the dates provided for that purpose.
In this way, the largest of the stablecoins is likely to lose a fundamental market on which its dominance of the sector rests. Some analysts fear that this banning of the token could lead to a collapse of the digital currencies market. The latter taking into consideration the weight of this currency in the trading of crypto assets.
Other coins such as Circle's USDC already have the e-money license that authorizes it to be listed on exchange listings. This means that merchants are not left without alternatives to the Tether token. However, the turnaround will probably not be straightforward. It is important to take into consideration that USDT is the third-largest token in the world, with about $140 billion in market capitalization.
So far, USDT is the largest asset in the crypto world punished with the ban stemming from the MiCA law. The exit of the popular coin could cause some headaches related to the liquidity of the crypto world.
An important element to consider is that USDT has a huge number of detractors. During the last hours, they have been carrying out a strong FUD campaign against the currency, denounced Tether's CEO Paolo Ardoino. In a publication in X, the executive referred to this onslaught and accompanied his message with a rocket icon.
In a later publication, Ardoino assures that the attacks against the currency are encouraged by its competitors. In this sense, the issuers of rival stablecoins carry out a smear campaign against his company.
“If you look at the bios of many of the people who are criticizing Tether, it's easy to understand their strategy. A poorly coordinated campaign, driven by competitors. It won't work the same way it never worked. We're moving on,” he wrote.
The entrepreneur stresses that European companies have a huge interest in working with Tether through tools such as Hadron. Either way, Ardoino claims to remain confident and says that so far only a couple of exchanges could delist USDT.
Some of his responses on X are quite risqué, even calling some critics “jackasses”. However, he chose not to answer a key question from a user, who questioned him about the possibility of USDT adapting to MiCA laws to continue on exchanges. Ardoino answered him with an evasive “which exchanges?”
Is it possible that the USDT ban is not strict at all and the currency can continue in the EU? That remains to be seen. Precisely, the MiCA law was born with the aim of ordering crypto trading and minimizing the ability of non-compliant players.
Source: Alejandro Gil
WEB: Cryptotrends.
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