Don’t Miss Out: Profiting from USDT Amid European Delisting Chaos | by 0xf3rret | The Capital | Dec, 2024
MiCA aims to enhance transparency and oversight in the cryptocurrency sector by imposing stringent requirements on stablecoin issuers. These include high licensing costs, substantial reserve holdings, and prohibitions on handling payment transactions without appropriate authorization. Tether Limited, the issuer of USDT, has not secured the necessary e-money license required under MiCA, leading to the impending delisting of USDT from EU-based exchanges.
Implications for Market Liquidity
USDT has been a cornerstone in cryptocurrency trading, providing a stable medium of exchange and serving as a key source of liquidity across various platforms. Its removal from European exchanges is expected to disrupt trading activities, potentially leading to increased transaction costs and reduced market efficiency. Investors and traders who have relied on USDT for seamless fund transfers may need to seek alternative stablecoins or adjust their trading strategies to accommodate this regulatory shift.
Strategic Considerations for Investors
In light of the forthcoming delisting, investors may consider the following strategies:
