The Impact of Delisting Tether (USDT) in the EU by OKX

The Impact of Delisting Tether (USDT) in the EU by OKX

The recent decision by crypto exchange OKX to delist Tether (USDT) pairs in the EU and only support USDC and euro-based pairs has raised concerns among users in the region. This move, which was communicated to customers on March 18, comes in the wake of the EU releasing draft technical standards related to stablecoins.

According to reports, OKX informed users that only EUR and USDC trading pairs will be available for spot trading in the future, with a plan to add 30 new trading pairs to compensate for the delistings. The exchange cited “regulatory requirements” as the reason for the variations in token listings across different regions.

As a result of this decision, OKX users in the EU have witnessed the removal of USDT-crypto pairs in countries like Germany. Currently, the only USDT pairs available on the spot market are USDT/EUR and USDT/USDC, affecting the trading options for users in the region.

The move by OKX is seen as a response to the stablecoin regulations outlined in the Markets in Crypto-Assets (MiCA) regulatory scheme introduced by EU authorities. These regulations, which include proposed guidelines for stablecoin issuer grievance procedures, are set to come into effect from June.

The new rules under the MiCA legislation pose challenges for exchanges looking to comply with the regulatory standards. With the complete legislative package expected to be operational by the end of 2024, exchanges like OKX will need to navigate the changing regulatory landscape to ensure compliance.

Companies like Circle, the issuer of USDC, are well-positioned to meet the regulatory requirements under MiCA. Circle’s efforts to obtain an Electronic Money Institution (EMI) license and its commitment to complying with the EU’s regulatory framework give it an advantage in the evolving stablecoin market.

The delisting of Tether (USDT) pairs by OKX in the EU reflects the growing impact of regulatory changes on the cryptocurrency market. As exchanges and issuers adapt to the new rules set by the EU, users can expect further adjustments to trading options and listings to ensure compliance with the evolving regulatory environment.

Exchanges

Articles You May Like

Critical Analysis of the Solana Meme Coin Market
Protecting Digital Assets: Oklahoma Leads the Way with ‘Bitcoin Rights’ Bill
The Future of Ethereum Price: Analyzing the Current Trends
The Future of Digital Art and NFTs

Leave a Reply

Your email address will not be published. Required fields are marked *