- Tether’s USDT stablecoin has been delisted from the European division of crypto exchange OKX ahead of upcoming EU regulations for stablecoins.
- The new EU regulations will require stablecoin issuers like Tether to be licensed as electronic money institutions to operate in the region.
- The OKX delisting foreshadows potential restrictions USDT and other major unregulated stablecoins may face across Europe once the new rules take effect.
Stablecoin issuer Tether has delisted its USDT stablecoin from the European division of the OKX crypto exchange. This action comes ahead of upcoming EU regulations that will require stablecoin issuers to be licensed as electronic money institutions.
Background on Tether and Regulatory Concerns
Tether’s USDT is the largest stablecoin by market capitalization and trading volume. However, Tether has faced ongoing questions about its reserves and whether its stablecoin is truly backed 1:1 by fiat currencies.
Regulators worldwide have raised concerns about the potential risks posed by unregulated stablecoins like USDT. Upcoming EU regulations will require stablecoin issuers like Tether to obtain licensing as electronic money institutions in order to operate in the region.
OKX Delisting in Europe
In response to the impending regulations, OKX has delisted USDT from its European division. OKX users in Europe will no longer be able to trade or hold USDT.
The delisting only applies to OKX’s European platform. USDT remains available on OKX for users in other jurisdictions.
Potential Impact and Future Regulations
This delisting on OKX foreshadows further restrictions USDT and other major stablecoins may face in Europe once the new regulations take effect. Other exchanges may similarly delist or restrict access to unlicensed stablecoins to comply with the rules.
Tether has not indicated if it plans to seek licensing as an electronic money institution in the EU. The company faces ongoing legal issues elsewhere that may complicate its ability to get regulatory approval in Europe.
Further stablecoin regulations are likely on the horizon worldwide as policymakers grapple with the risks posed by these cryptocurrencies. The OKX delisting provides an early example of how upcoming rules could limit access to unregulated stablecoins.
