Amidst regulatory challenges, the CEO of CryptoQuant reassures the stability of Tether (USDT) demand. Despite widespread delisting across European crypto exchanges, the largest stablecoin by market cap, Tether, remains resilient.
Compliance with the Markets in Crypto Assets (MiCA) regulation, effective from December 30, has forced these exchanges to cease USDT trading, impacting its presence in the European Union (EU).
The MiCA regulation mandates that stablecoin issuers must secure specific licenses to operate within the EU, a requirement Tether has yet to fulfill.
According to CoinMarketCap, USDT’s market capitalization dipped from $140.5 billion to $138 billion within a week, reflecting growing market apprehension about Tether's regulatory challenges in the EU. Additionally, USDT slightly deviated from its dollar parity, trading at $0.998 at present. However, CryptoQuant's CEO, Ki Young Ju, argues that Tether’s fundamental position remains unaffected.
Sharing insights on X, he presented data on USDT’s exchange reserves — a key indicator of demand as an increasing reserve suggests strong buying interest.
He remarked, “Tether FUD: EU exchanges are delisting USDT ahead of MiCA. USDT is losing its power! Actual impact on exchange USDT reserves:” with an analytical breakdown accompanying his commentary.