Tether Faces Potential Ban in Europe Under MiCA Regulations
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Financial analyst Jacob Kinge warned, "Tether hasn’t minted anything in over two weeks, and nobody knows why." This uncertainty has added pressure to an already tense market.
Liquidity Concerns for European Exchanges
European exchanges rely heavily on Tether for trading pairs, and its delisting could create a liquidity crisis. Joseph Hurtado, founder of Granata Consulting, argued, “The Euro loses. Tether is the largest stablecoin, and this move makes them prepared for a US-friendly crypto administration. Europe is losing in all tech fronts, first AI, now crypto.”
Critics and supporters of Tether are divided. Some view its potential ban as a necessary regulatory step, while others fear market fragmentation and increased transaction costs.
Market Volatility on the Rise
Questions about Tether’s reserves and transparency persist. While BDO Italia conducts assurance reports on its reserves, podcast host Jason Calacanis remains skeptical: “They still haven’t passed an audit by a major firm — while having tens of billions under their ownership.”
Meanwhile, Tether CEO Paolo Ardoino remains optimistic, emphasizing the company’s efforts to expand real-world use cases for $USDt and other technologies. “Our dedication goes to the hundreds of millions (likely billions) of people in our network of reach. Unstoppable TogETHER,” Ardoino said.
What This Means for Investors
As Tether’s future in Europe remains uncertain, investors are advised to: