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Crypto.com was the most recent cryptocurrency exchange to eliminate Tether's USDT from its Eurozone platforms because of the complete integrations in Europe's stablecoin regulation under its Markets in Crypto-Assets (MiCA) laws.
According to the exchange, the decision complied with the rules set forth by MiCA. Days prior, the European Securities and Markets Authority (ESMA) had called on exchanges that occurred in the European Union (EU) to block cryptocurrency assets that did not comply.
USDT Ban Under MiCA
According to ESMA's Jan. 17 argument, cryptocurrency exchange platforms have until the end of the first quarter of 2025 to meet the requirements, even though the agency acknowledges that removing USDT could cause unstable cryptocurrency markets. The two main exchanges that have delisted USDT, the largest stablecoin by market capitalization, thus far are Coinbase and Crypto.com, which most recently got a MiCA authorization.
Tether CEO Paolo Ardoino and other opponents of MiCA rules involving asset-referenced tokens (ARTs) and electronic money tokens (EMTs) claimed that delisting USDT might lower liquidity and pose systemic risks for digital assets and the banking industry. According to others, these factors might further divide the market and compel merchants to utilize different stablecoins, which might make cross-border transactions more difficult and decrease overall efficiency.
Nonetheless, some analysts think the regulator's actions, such as discovering the "pass porting" feature, benefit Bitcoin platforms and users alike. Marina Markezic, co-founder and executive director of the European Crypto Initiative, is one of these specialists who appreciates MiCA's "transformative nature."
"After Challanges, MiCA offers cryptocurrency companies a great chance to function more effectively in European marketplaces. Thanks to this one registration strategy, blockchain and cryptocurrency projects can now provide services during the EU with much lower difficulties," claims Markezic.
The Swiss Model
The executive director of the European Crypto Initiative also indicates how this "innovative approach" might facilitate market access and speed up innovation.
Some analysts employ Switzerland's "technology-neutral" legal system to indicate why the EU benefits from enforcing MiCA legislation. Proponents claim that one of the reasons bitcoin companies have come to the nation is the framework, which is thought to enable new inventions without impeding growth.
However, Web3 partner Andreas Glarner of the Swiss law firm MME claimed he does not believe the EU will follow Switzerland's example of success with MiCA in its recent form. He reveals:
"We are highly doubtful that the framework will allow EU/EEA companies to effectively target the global market, given that the MiCA Regulation is meant to be an EU market access regulation with a high implementation burden (and costs)."
According to Glarner, Switzerland will be able to manage its position as the global hub ahead of the EU thanks to its business-friendly climate and well-recognized financial services ecosystem.
According to the CEO, Apex Fusion's strategy ensures that innovation and compliance coexist, enabling a "seamless" adoption process. Bjelajac went on to claim that everything takes place in "a secure, sustainable, and inclusive ecosystem for all participants."