EU’s upcoming crypto rules could impact liquidity due to USDT delistings
Author: Content Editor
The EU's forthcoming cryptocurrency regulations, set to take effect on December 30, are causing concerns about disruptions to market liquidity. The new rules, under the Markets in Cryptoassets framework, will require exchanges to comply with new requirements, including delisting Tether's USDT stablecoin, due to the lack of a license from Tether Limited. USDT is a widely used stablecoin and its absence in the EU market is expected to disrupt trading activity and increase costs for investors. The strict regulatory stance of the EU may push traders and liquidity providers to less restrictive jurisdictions, potentially undermining Europe's competitiveness in the global crypto market. While the regulations aim to enhance transparency and curb illicit activity, there are concerns about their impact on market stability, investor confidence, and the region's ability to attract innovation and investment.