Tether Abandons Euro Stablecoin Collaboration with MiCAR
In a surprising move, Tether, the issuer of the world's largest stablecoin, has announced it will be shutting down its Euro stablecoin, EURT. The decision comes amidst Tether's reluctance to comply with the European Union's Markets in Crypto-Assets (MiCAR) regulations.
For those unfamiliar, MiCAR is a set of regulations aimed at enhancing the oversight of crypto-assets in the European Union. One of the key requirements is for stablecoin issuers to hold a substantial proportion of reserves in bank accounts. However, Tether, along with other stablecoin issuers, has expressed reservations about this requirement.
Tether's USD stablecoin, USDT, boasts a market capitalization of $132 billion, making it the largest stablecoin in the world. However, EURT, Tether's Euro stablecoin, has a much smaller market capitalization of €26 million.
Tether has been operating offshore until now, and the likelihood of it becoming MiCAR compliant is low. This decision to shut down EURT could be a strategic move to avoid the costly and time-consuming process of becoming compliant.
Users of EURT have been given a year to redeem their coins. Tether's decision to discontinue EURT will undoubtedly have implications for the European crypto market, particularly for those who have invested in EURT.
This move by Tether underscores the growing tension between crypto companies and regulatory bodies. As the crypto market continues to evolve, it will be interesting to see how other companies respond to increasing regulatory scrutiny.
The article continues to explore the implications of Tether's decision and the broader impact on the crypto industry. Stay tuned for more updates.
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