Is USDT blocked in Europe based on MiCA regulation? What are Bitomat ATMs doing about USDT and USDC?

Following the entry into force of the MiCA (Markets in Crypto-Assets) regulation in the European Union, it has become clear that these requirements significantly limit the possibility of offering certain stablecoins, including USDT (Tether), on the European market. What does this mean for Europe and the world of cryptocurrencies?

In practice, many entities operating in the EU have already adapted their offerings to the new regulations, limiting or withdrawing support for stablecoins that do not meet MiCA requirements.

Why is Tether's Market Share Declining? 

Tether remains the largest US dollar-pegged stablecoin in terms of global capitalization and trading volume. At the same time, its market share has been gradually declining for several years, especially in jurisdictions subject to strict regulations. At the same time, regulated alternatives, such as USDC issued by Circle, are steadily strengthening their position, especially in markets subject to regulatory oversight.

So Where Does the Problem Lie?

The main reasons why Tether does not comply with European regulations stem from its non-compliance with the transparency and oversight obligations introduced by MiCA. Under MiCA, issuers of stablecoins classified as electronic money tokens (EMTs) or asset-referenced tokens (ARTs) must meet stringent requirements regarding reserve structure, transparency, audits, and ongoing supervision by EU regulators. Tether has had transparency issues with its reserve assets in the past, which may make it difficult to meet these requirements. In addition, MiCA introduces restrictions on the transaction volume of stablecoins that may pose systemic risk. Due to its high transaction volume, USDT may be subject to more stringent controls.

As a result, the European market is gradually shifting towards stablecoins that are fully compliant with MiCA and issued by entities with the appropriate licenses in the EU. For users, this means greater regulatory protection and transparency, while for issuers, it means the need to adapt their business models to European financial supervision standards.

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All these events coincided with the entry into force of the MiCA regulation, as a result of which some of the major cryptocurrency exchanges operating on the European market restricted or withdrew trading pairs involving USDT. For example, the OKX exchange introduced restrictions on trading pairs with USDT for EU users, while other large entities, such as Kraken, adapted their offerings to MiCA requirements, limiting the availability of stablecoins that do not comply with the new regulations. One of the most significant signals for the market was Coinbase's announcement of its decision to delist stablecoins that do not comply with MiCA, including USDT, from trading on the European market.

Can Europe Be Isolated from the Cryptocurrency World?

The likelihood that a stablecoin as large as Tether will no longer compete in Europe raises hopes for the growth of euro-based stablecoins. As the euro is Europe's local currency, this development favors increased interest in euro-based stablecoins, which are perceived as more compatible with the European regulatory environment.

Is There an Opportunity for Euro-Based Stablecoins? What Do We See in the Current Situation?

In this context, Circle, following the success of its US dollar-backed stablecoin (USDC), has launched a new euro-backed stablecoin, EURC. EURC is issued in accordance with European regulatory requirements and is an example of a stablecoin designed for MiCA compliance from the outset.

Circle EURC aims to fill a significant gap in the market as a regulated euro stablecoin. Given the possibility that large USD stablecoins such as Tether may withdraw from the European market due to MiCA regulations, EURC can be expected to play an important role in Europe. While these changes are taking place, it is important to remember that USD stablecoins continue to dominate globally, with other currencies not having a significant presence in this space. If the market continues in this direction, stablecoins such as EURC may gain popularity.

At the same time, there are concerns that an overly restrictive regulatory approach could limit the competitiveness of the European cryptocurrency market compared to other jurisdictions. The balance between protecting consumers and promoting innovation is a delicate one. The cautious approach of European financial institutions to cryptocurrenciesThe cautious approach of European financial institutions to cryptocurrencies

The cautious approach of European financial institutions to cryptocurrencies

Looking at the banking sector and financial institutions in Europe, it is clear that there is strong opposition to cryptocurrencies in traditional financial systems. The President of the European Central Bank, Christine Lagarde, has clearly stated that cryptocurrencies "have no value." With this perspective and influence on regulatory policies, these statements reflect the cautious approach of European institutions to cryptocurrencies, stemming from concerns about financial stability and consumer protection.

Despite this statement from 2022, cryptocurrencies continue to develop and grow rapidly. This situation poses a potential threat to the authority of traditional financial institutions and central banks. One of the fundamental characteristics of cryptocurrencies is decentralization, which aims to reduce the role of intermediaries in the financial system and distribute power among individuals. This state of affairs may be difficult to accept for the European banking sector, which is accustomed to central authorities, and may be a significant factor influencing their negative attitude towards cryptocurrencies. For many years, USDT has correctly served as a stable asset in the world of cryptocurrencies. As a result of the entry into force of MiCA, USDT does not meet the requirements for stablecoins offered on the European market, which results in its withdrawal or restriction in the offer of cryptocurrency exchanges operating in the EU.

CBDC and Europe's Cryptocurrency Strategy.

The President of the European Central Bank, Christine Lagarde, consistently supports the central bank digital currency (CBDC) project in the euro area. At the same time, the ECB presents a cautious approach to cryptocurrencies, emphasizing the risks associated with their volatility, consumer protection, and financial system stability.

In the context of the European Central Bank's monetary policy, which includes interest rate changes and instruments supporting market liquidity, questions arise regarding the long-term stability of money in the euro area. The ECB presents the CBDC project as a tool for modernizing the payment system, increasing its efficiency, and strengthening control over the circulation of money in the digital environment.

Bitcoin ATM: Relationship to Buying Usdt İ Usdc Or Exchanging Coins for Cash.

Following the entry into force of MiCA regulations, some cryptocurrency exchanges have restricted or withdrawn trading pairs involving USDT on the European market. Bitcoin ATM an approach focused on user protection and ongoing monitoring of the regulatory situation.

Bitcoin ATM its users Bitcoin ATM access to selected stablecoins, including USDC, in accordance with applicable laws and internal compliance procedures. In particular, users who prefer stablecoins that meet European regulatory standards can use USDC-based solutions.

Additionally, thanks to its incredible capabilities, we offer the option of exchanging USDC for cash via Bitcoin ATM zero commission, and even with additional rates ranging from +1% to +3%.

You can visit our nearest ATMsto purchase USDC or exchange your stablecoins for cash.