{"id":8888,"date":"2025-01-21T15:38:04","date_gmt":"2025-01-21T15:38:04","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=8888"},"modified":"2025-01-21T15:38:04","modified_gmt":"2025-01-21T15:38:04","slug":"esma-sets-january-deadline-to-align-with-mica-stablecoin-rules-tethers-usdt-can-be-affected","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=8888","title":{"rendered":"ESMA Sets January Deadline To Align With MiCA Stablecoin Rules, Tether\u2019s USDT Can Be Affected"},"content":{"rendered":"
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In its latest announcement<\/a>, the European Securities and Markets Authority (ESMA) issued a critical directive for crypto firms, specifically stablecoin issuers, operating within the European Union (EU). <\/span><\/p>\n

On 17 January 2025, ESMA mandated compliance with the new Markets in Crypto-Assets Regulation (MiCA). ESMA has set a 31 January 2025 deadline for crypto asset service providers (CASPs) to address non-compliant stablecoins.<\/span><\/p>\n

ESMA\u2019s directive will now compel CASPs to either restrict or delist non-compliant stablecoins by the end of January.<\/span><\/p>\n

Explore: MiCA-Compliant Stablecoins Dominate European Market. BTC-EUR Trading Pair Flourishes!<\/a><\/strong><\/p>\n

Major Players Like Tether\u2019s USDT Can Suffer\u00a0<\/strong><\/h2>\n

While ESMA did not name specific stablecoins in its statement, industry insiders suggest that major players like Tether\u2019s USDT could be affected due to their lack of MiCA authorization.<\/span><\/p>\n

Tether\u2019s USDT, the largest stablecoin by market capitalization, has become a focal point in the MiCA compliance debate. <\/span><\/p>\n

Reports indicate that USDT does not currently hold the necessary MiCA license. <\/span><\/p>\n

For tokens already in circulation, firms are allowed to transition to a \u201csell-only\u201d model. <\/span>However, this provision comes with a hard deadline of 31 March 2025, after which further restrictions could be imposed.<\/span><\/p>\n

Hence, CASPs listing USDT must act swiftly to delist or transition it to \u201csell-only\u201d conditions by 31 March 2025.<\/span><\/p>\n

Tether reported experiencing a sharp decline\u00a0<\/a>in its market value, dropping by 1.2% to $137 billion, earlier this month.\u00a0This marks its steepest weekly loss since November 2022, during the FTX collapse.<\/p>\n

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\"\u26a0\"\"\u23f3\" Just 20 more days until Tether becomes effectively illegal across the entire EU.<\/p>\n

Tether has refused to comply with MiCA requirements because it would mean they\u2019d be forced to adhere to basic consumer protection and transparency standards pic.twitter.com\/Fxwsdqw4g2<\/a><\/p>\n

\u2014 Rho Rider (@RhoRider) June 11, 2024<\/a><\/p>\n<\/blockquote>\n