OKX Discontinues Support for Tether’s USDT in the EU
OKX, a cryptocurrency exchange, has made the decision to discontinue support for cryptocurrency trading pairs involving Tether’s USDT stablecoin for users based in the European Union (EU) and the European Economic Area (EEA). Starting Monday, OKX’s platform restricted spot crypto trading to only USDC and euro pairs, while USDT could only be traded against USDC and euro. This decision was driven by OKX’s focus on euro-denominated liquidity in the region. Although USDT trading pairs have been removed for EU users, USDT remains available on the OKX platform for depositing, withdrawing, and engaging in over-the-counter (OTC) trading.
OKX Focuses on Euro-Denominated Liquidity
An OKX spokesperson stated that the decision to discontinue support for USDT pairs in the EU was part of their strategy to expand EURO pair liquidity and become the preferred venue for EURO to crypto spot trading. The exchange has recently introduced a variety of Euro fiat onramps and Euro pairs in the EEA. This decision is not expected to have a significant impact on their user base as they have expanded their product offering in the region.
Tether Surpasses $100 Billion Market Cap
In early March, Tether’s USDT reached a market capitalization of over $100 billion, with a year-to-date growth of 9%. This makes USDT the largest stablecoin with a significant lead over its closest competitor, USD Coin (USDC). However, concerns about the quality of assets backing USDT have persisted in the crypto community.
Potential Regulatory Challenges Ahead
The discontinuation of USDT trading pairs by OKX in the EU may indicate potential regulatory challenges for the stablecoin within the region. The EU is set to implement its comprehensive digital asset regulatory framework called MiCA later this year, which will require stablecoin issuers to obtain regulation as electronic money institutions. Circle, the issuer behind USDC and EURC, has already obtained conditional registration for digital asset services in France and has applied for an electronic money institution license in the EU.
Tether’s Response to Concerns
Tether has refuted claims about its involvement in cyber fraud and money laundering activities in Southeast Asia. The company emphasizes its collaboration with law enforcement agencies and the traceability of its token. Tether has stated that its collaboration with global law enforcement, including the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the United States Secret Service (USSS), has resulted in unparalleled monitoring capabilities that surpass traditional banking systems.
Hot Take: OKX’s Decision Raises Questions About USDT’s Future in the EU
OKX’s discontinuation of support for Tether’s USDT trading pairs in the EU highlights potential regulatory concerns surrounding the stablecoin. With the EU’s upcoming implementation of MiCA and the requirement for stablecoin issuers to obtain electronic money institution regulation, it remains to be seen how other exchanges and platforms will respond. The decision also raises questions about the future of USDT’s market dominance and whether other stablecoins like USDC will gain more traction in the EU market.
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