This is WHy Tether Discontinued EURT Amid MiCA Regulations
Tether, the famous Stablecoin The issuer will discontinue EURT due to the EU MiCA regulations. Nonetheless, the company still invests in other MiCA-compliant stablecoins and maintains revenue streams from European markets.
Some competitors see MiCA as an opportunity to subvert Tether’s dominance of EU stablecoins, and the company has made some concessions in the competition.
Tether reacts with MiCA
this morning, The famous stable currency Tether Announce via social media media It will discontinue its euro-backed asset EURT. The company explained its decision via a blog postaladding that the company has stopped minting the asset and current holders will have one year to redeem EURT tokens.
“Given the evolving regulatory framework around stablecoins in the European market, this decision is consistent with our wider strategic direction. Until a more risk-averse framework is in place – one that promotes innovation and delivers the stability and stability our users deserve A framework for conservation – we choose to prioritize other initiatives,” the post states.
In other words, Tether has chosen this path for one clear reason: the upcoming Crypto Asset Market (MiCA) EU law. MiCA will change the EU’s cryptocurrency regulations, specifically rearranging the dynamics of stablecoins. In early September, several large companies publicly believed that MiCA Opportunities to destroy Tether’s business in Europe.
Competitors have begun entering the EU market with MiCA-compliant stablecoins; this The first one launches in September. Schumann Finance is a company founded by former Binance EU executives. release Yesterday is your own asset. Other crypto industries are also leveraging MiCA, Revolut X expands European trading operations earlier this month.
Still, while Tether has given up part of the market, EURT’s demise does not mean the end of Tether’s interests. The announcement made it very clear Tether is a major investor in MiCA-compliant stablecoins From Quantos. Tether is also promoting Hadron, its new solution designed to support issuers in creating and managing stablecoins.
In short, Tether is making a planned exit from the European market rather than outright capitulation. The company is maintaining multiple revenue streams through MiCA-compliant stablecoins and may re-enter the space later. Currently, the company has significant resources to address this issue.
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