USDT TO BE BANNED IN THE EU BY DECEMBER 30!

[wwzsocki]

"BREAKING: USDT TO BE BANNED IN THE EU BY DECEMBER 30

The Global Crypto Market Faces a Major Shock!

Starting December 30, USDT, the world’s largest stablecoin, will be delisted from all exchanges in the European Union (EU). This bold move stems from the MiCA regulations, a sweeping overhaul of crypto governance. The decision will not only reshape the market landscape but also bring new challenges and opportunities."

https://www.binance.com/en/square/post/17942336867625

I just found this on Binance Square and am surprised that I haven't heard anything earlier about such big change for EU markets.

Wonder your thoughts, this can cause a shock for sure short term on crypto markets if USDT will be banned from all EU regulated exchanges in 2 days  

[Stalker22]

Yeah, these MiCA regulations arent really surprising me.  I already heard Coinbase was gonna stop offering USDT to people in Europe earlier this month cause of new EU rules.  Even though the headline makes it sound like Tether is totally banned, thats probably just misunderstanding.  More likely, exchanges will just delist it since the stricter requirements under MiCA.

I doubt we will see an outright ban across the EU and  the rules basically mean exchanges need to back up stablecoins with real reserves and be more transparent.  So unless Tether shapes up to comply places like Coinbase will drop it for European users rather than deal with the regulatory headache.  Annoying for folks who own USDT, but no reason to panic.  It was never really wise to hold large sums of money in centralized exchanges or stablecoins anyway.

[wwzsocki]

...I doubt we will see an outright ban across the EU and  the rules basically mean exchanges need to back up stablecoins with real reserves and be more transparent.  So unless Tether shapes up to comply places like Coinbase will drop it for European users rather than deal with the regulatory headache.  Annoying for folks who own USDT, but no reason to panic.  It was never really wise to hold large sums of money in centralized exchanges or stablecoins anyway...

we will have to wait and see, time to start using USDC instead

I think it can cause some liquidity problems on European exchanges and wonder how this will impact BTC price at least short term?

strange that such big news wasn't discussed almost at all, looks like big media outlets haven't picked it up either so far

[Die_empty]

Wonder your thoughts, this can cause a shock for sure short term on crypto markets if USDT will be banned in all EU exchanges in 4 days  

The new MiCA regulation mandates all firms who issue stablecoins in centralized exchanges to get an e-money license. I don't know the procedures to get the license but it seems that it might take a long bureaucratic process. European nations are just trying to protect it's citizens from the risks associated with these centralized crypto but it might have some negative effects. It will make Europe less attractive to crypto companies. Many of them might move to other friendly countries,.maybe the US and other North and south America nations.

[SamReomo]

I think it can cause some liquidity problems on European exchanges and wonder how this will also impact BTC price at least short term?

Not sure but I don't think that it will affect the value of Bitcoin in anyway. Most of those who currently hold USDT will convert those into USDC and that can be done within seconds. Surely, some of them might withdraw their money in current situations but I don't think it will impact price of Bitcoin in anyway.

[wwzsocki]

I think it can cause some liquidity problems on European exchanges and wonder how this will also impact BTC price at least short term?

Not sure but I don't think that it will affect the value of Bitcoin in anyway. Most of those who currently hold USDT will convert those into USDC and that can be done within seconds. Surely, some of them might withdraw their money in current situations but I don't think it will impact price of Bitcoin in anyway.

i was thinking more about arbitrage opportunities

if USDT pairs will be not available and as we know USDC pairs are not so liquid especially on smaller exchanges, it can cause some price differences  

[OcTradism]

we will have to wait and see, time to start using USDC instead

I think it can cause some liquidity problems on European exchanges and wonder how this will impact BTC price at least short term?

strange that such big news wasn't discussed almost at all, looks like big media outlets haven't picked it up either so far

if USDT pairs will be not available and as we know USDC pairs are not so liquid especially on smaller exchanges, it can cause some price differences  

This big policy enforcement will force many cryptocurrency users to switch from USDT to USDC for their stable coin storage, and it will increase popularity and usage of USDC in future.

They are competitors with each other, and if USDT fails, USDC will take advantage of it to rise more. I believe Tether will not stay silent, inactive and do nothing. They will soon make changes to comply with requirements from governments in the EU, but it needs time. In short term switching from a risky stable coin like USDT to USDC is good for risk management.

Generally all stable coins are risky.
PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets.

[goldkingcoiner]

The only reason they can ban a cryptocurrency like USDT is because it is centralized.

As much as I dislike these government bureaucrats trying to tie even more regulation nooses around our necks, there is no need to panic. They cannot regulate actual decentralized crypto as long as it is stored outside of custodial wallets (like crypto-exchange wallets).

But the question is do we even have a decentralized stablecoin? USDC is an alternative but it is just as centralized.

[JeffBrad12]

kinda expected this, USDT is too big for its own good to not be MICA complying, meanwhile USDC been doing all that, I think there will be a huge shift to USDC pair in EU.
but overall, I don't expect anything of significance to happen, probably USDT will just trying to be MICA compliant as well, they got the resources to do that, but might take some time.
as of now, i'm already content using USDC, after that rumour of USDT reserve, already converted most of my USDT to USDC anyway.

[avikz]

Wonder your thoughts, this can cause a shock for sure short term on crypto markets if USDT will be banned in all EU exchanges in 4 days  

I too am seeing this news now. I think we have many alternatives available in the market today and that's why a lot of people are not much bothered about the ban. USDT is undoubtably the biggest stablecoin in the market today but that does not mean, they are not replaceable. People can simply switch to USDC for instance. So I don't think there will be any shock if EU bans USDT from the European exchanges. People will switch and I am sure a lot of people have already started switching to safeguard their wealth.

MICA regulation talks about transparency. Let's hope it happens in reality!

[Lakai01]

[...]
strange that such big news wasn't discussed almost at all, looks like big media outlets haven't picked it up either so far

I think this is because the European stock market in general is simply far too small to have a (significant) impact here, even if it is very unpleasant for us Europeans.

But the background behind the delisting is that Tether has not yet met the requirements of Mica (proof of funds, ...) and is therefore being removed from the stock exchanges. Tether therefore also seems to have little interest in the European market ...

Tether must provide proof of its reserves’ transparency and must undergo regular independent audits to meet MiCA’s requirements. If it does not comply, $USDT will be delisted from use in EU-based cryptocurrency trading platforms.

Source

But as you rightly point out, USDC is a pretty good alternative to Tether!

[tbct_mt2]

The only reason they can ban a cryptocurrency like USDT is because it is centralized.

USDC is an alternative but it is just as centralized.

It is not government reason to ban USDT, while they allow another centralized stable coin USDC!

As much as I dislike these government bureaucrats trying to tie even more regulation nooses around our necks, there is no need to panic. They cannot regulate actual decentralized crypto as long as it is stored outside of custodial wallets (like crypto-exchange wallets).

With centralized stable coins, they can freeze these stable coins in your wallets, non custodial wallets through smart contracts. They don't need you to store your stable coins in centralized exchange accounts and knock exchange doors to freeze your account and your stable coins.

But the question is do we even have a decentralized stablecoin?

They will try to arrest founders, developers of decentralized stable coins and make some possible requests. Only Bitcoin with anonymous founder Satoshi Nakamoto and its decentralized design, is free from government pressure and attack.

[Ararbermas]

USDT is the main stable coins of all trader and investors in the crypto space, so if this wasn't a fake news for sure many people will look for another trusted crypto where to secure their capital from the volatility of crypto market. And i know this will not make an impact on Bitcoin but the problem is what coin to replace USDT especially when it comes long term?.

[27QVUTZj8rgZP1]

...
there was some recent news that BTC ATMs will require full KYC now in Poland thanks to new EU regulations but this is like 1000 times more important and I don't see anybody talking about it, so I thought maybe some fake news, and better it will be the case but on Binance Square?

Anyone can write a post on Binance Square.

I also found this post from the official Binance News account: https://www.binance.com/en/square/post/12-27-2024-tether-faces-potential-ban-in-europe-amid-regulatory-challenges-18117531627074

It is not government reason to ban USDT, while they allow another centralized stable coin USDC!
...

Governments do not like losing control, so they will do everything they can to monitor, control and follow every step of crypto and stablecoin holders. Centralized exchanges and stablecoins have to follow their rules if they want to stay in the game. And if they cannot do the same with decentralized alternatives those who use them will just be considered criminals.

[wwzsocki]

Anyone can write a post on Binance Square.

this is legit info (unfortunately) and start to get attention from more people


https://x.com/jacobkinge/status/1872420454440546776

Governments do not like losing control, so they will do everything they can to monitor, control and follow every step of crypto and stablecoin holders...

this is why I laugh when i hear explanations that regulations like MICA are done to protect unexperienced investors from crypto risks

...Generally all stable coins are risky.
PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets.

thanks for sharing, TBH I wasn't aware of that, frozen in my wallet WTF 

[virasog]

if USDT pairs will be not available and as we know USDC pairs are not so liquid especially on smaller exchanges, it can cause some price differences  

Also there are many pairs (altcoins) that are trading in only USDT pair, so if the UDST is removed from the exchanges it may cause a bit of dump to those altcoins too. Although one can argue that it will happen only in the European exchanges but bear in mind European is a big market and it will have an impact globally.

It will be interesting to see how much marketcap of the USDT is removed after this event. The current marketcap of USDT according to coingecko is $139,165,337,076

https://www.coingecko.com/en/coins/tether

[doomloop]

The only reason they can ban a cryptocurrency like USDT is because it is centralized.

As much as I dislike these government bureaucrats trying to tie even more regulation nooses around our necks, there is no need to panic. They cannot regulate actual decentralized crypto as long as it is stored outside of custodial wallets (like crypto-exchange wallets).

Even BTC that is decentralized has also experienced a ban on different countries before. The ban of USDT is only in EU, so if we are not from this country or are using a USDT, then yeah there is no need for us to panic. But if the panic is all about the impact, thinking other cryptos will also decline in price, it can only be temporary. Even we are using a centralized crypto like USDT, it is always best to use a non-custodial wallet, so that we are always in control of our money.

But the question is do we even have a decentralized stablecoin? USDC is an alternative but it is just as centralized.

I think yeah, we have it. What about DAI? I think there are others too but I forgot their name for now. We have plenty of alternatives to choose from, not only USDC, so there is no need for us to force ourselves on it.

[tabas]

I am not fully versed with the MiCA regulations and this probably where the market is heading, KYC and bans everywhere!

there was some recent news that BTC ATMs will require full KYC now in Poland thanks to new EU regulations but this is like 1000 times more important and I don't see anybody talking about it, so I thought maybe some fake news, and better it will be the case but on Binance Square?

Wonder your thoughts, this can cause a shock for sure short term on crypto markets if USDT will be banned in all EU exchanges in 4 days  

There have been banning scenarios for BTC even before and now with USDT. And maybe the next stable coins will be targeted next. Monero has been delisted as well in South Korean exchanges and others as well. What's next? Governments really are trying to push down the market, will these be signs that we're entering the bear market? No, I hope not so.

[goldkingcoiner]

The only reason they can ban a cryptocurrency like USDT is because it is centralized.

As much as I dislike these government bureaucrats trying to tie even more regulation nooses around our necks, there is no need to panic. They cannot regulate actual decentralized crypto as long as it is stored outside of custodial wallets (like crypto-exchange wallets).

Even BTC that is decentralized has also experienced a ban on different countries before. The ban of USDT is only in EU, so if we are not from this country or are using a USDT, then yeah there is no need for us to panic. But if the panic is all about the impact, thinking other cryptos will also decline in price, it can only be temporary. Even we are using a centralized crypto like USDT, it is always best to use a non-custodial wallet, so that we are always in control of our money.

But the question is do we even have a decentralized stablecoin? USDC is an alternative but it is just as centralized.

I think yeah, we have it. What about DAI? I think there are others too but I forgot their name for now. We have plenty of alternatives to choose from, not only USDC, so there is no need for us to force ourselves on it.

Well the trouble is that even with a custodial wallet, as long as a pseudo cryptocurrency such as USDT is centralized, you will not be in control of your money, no matter which wallet you use.. In fact, they can freeze the USDT in your own custodial wallet if they wanted to.

Look at what happened when China 'banned' Bitcoin for the first time. The price went down, people panicked, sold their coins. But China still could not halt mining or transacting of Bitcoin. Even such a authoritarian government could not do anything to effectively ban Bitcoin. But with USDT it would have been a different story.

DAI is neat and probably one of the most decentralized stablecoins but the holders are too few in numbers and a large amount of their collateral is in USDC, a centralized currency. It has weak points. I consider it semi-centralized.

[Charles-Tim]

DAI is neat and probably one of the most decentralized stablecoins but the holders are too few in numbers and a large amount of their collateral is in USDC, a centralized currency. It has weak points. I consider it semi-centralized.

Which means if anything terrible happened to USDC, that thing will also happen to DAI. I remember when some banks like Silvergate went bankrupted like 2 years ago that USDC was depegged, also DAI was also depegged until USDC got back its USD price. That has been the time I do not trust the coin anymore, although we heard that it can not be frozen on noncustodial wallet unlike those USDT and USDC.