[Analysis] "Tether's Delisting from EU Inevitable...Impact Likely Minimal"

An analysis suggests that the delisting of the stablecoin Tether (USDT) in the European market is inevitable. This is due to the European Union's (EU) significant tightening of cryptocurrency regulations.

Agne Linge, the Chief Growth Officer of the blockchain neobank WiFi, stated in an interview with The Block on the 30th (local time) that "According to the EU's new (cryptocurrency regulation) bill, major stablecoin issuers like Tether must keep more than 60% of their reserves in banks," and "It is practically impossible for Tether to meet these conditions without disrupting the cryptocurrency ecosystem."

The EU has officially implemented the MiCA law, a bill that comprehensively regulates the cryptocurrency market. Tether has not yet received certification from EU authorities that it complies with the MiCA law.

This context is also behind the European branch of the cryptocurrency exchange Coinbase delisting five stablecoins, including Tether, earlier this month. Binance, Crypto.com, and others are still supporting Tether trading and are awaiting further guidance from EU authorities.

However, it is analyzed that even if Tether withdraws from the EU market, the financial impact will not be significant. Linge analyzed, "Considering Tether's market share and global presence, the potential withdrawal from the EU market is unlikely to have an immediate financial impact." He added, "Tether is expected to generate $10 billion in revenue this year alone," and "(Tether) is diversifying its products and investments to mitigate risks related to stablecoins."

There is also an opinion that the cryptocurrency market within the EU could shrink. Uldis Teraudkalns, Chief Revenue Officer (CRO) of the European cryptocurrency trading platform Paybis, said, "The new regulations require significant additional investment," and predicted that "not only small companies but also some large companies will leave the EU." He added, "Countries with relaxed regulations, such as the United Kingdom and Switzerland, could become beneficiaries."