Tether Dropped from European Exchanges Amid MiCA Compliance Fiasco

The European Union's Markets in Crypto-Assets (MiCA) regulation has reached its hard deadline of July 1, 2026, for stablecoins. As a result, licensed European exchanges have removed Tether's USDT from their order books due to the company's failure to obtain e-money-token authorization under MiCA.

Tether, with its $139 billion market size worldwide, has chosen not to pursue the necessary authorization, arguing that MiCA's reserve-composition and bank-deposit requirements introduce risks and constrain how it manages USDT. In contrast, Circle's USDC and euro-denominated EURC have been structured to meet the rule and will remain listed on European exchanges.

The delisting of USDT from EU-regulated venues is a significant development in the global stablecoin market. The regulation aims to make euro-region stablecoins behave like real electronic money, with protections similar to those provided by bank deposits. A total of 17% of crypto service providers across the EU have secured the necessary licensing under MiCA.