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Users who maintain EURT have one 12 months to redeem their funds.
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The resolution aligns with the MiCA Law, which regulates stablecoins in the EU.
Tether, the firm behind the world’s largest stablecoin, USDT, introduced that it has suspended assist for EURT, its euro-based stablecoin.
In a press release printed this Wednesday, November 27, they reported that they made the resolution “after careful consideration.”
“As such, Tether has stopped issuing EURT, with the last acquisition request processed in 2022, and new EURT issuance requests are no longer accepted,” the firm says.
The firm mentioned that customers who personal EURT on all networks They have till November 27, 2025 to redeem their holdings.
Although they don’t point out it explicitly, this measure is taken in the context of the MiCA Law, that regulates stablecoins in the European Union.
They add that the resolution to cease issuing EURT “aligns with our broader strategic direction, taking into account the evolution of regulatory frameworks surrounding stablecoins in the European market.”
The entry into pressure of MiCA in the center of this 12 months led to the withdrawal of USDT from the European market, as reported by CriptoNoticias. In this sense, Tether expressed that till “a more risk-averse framework is established, one that encourages innovation and offers the stability and protection that its users deserve,” they’ll select to “prioritize other initiatives.”
This change in Tether’s technique additionally displays the difficulties confronted by stablecoins in the EU. As CriptoNoticias has reported, USDT assist has been withdrawn in a number of exchanges that function in the EU territory. to keep away from dangers of infringements.
Recently, this outlet reported a 70% drop in euro stablecoin buying and selling due to MiCA. According to Kaiko analysts, “this indicates that there has been no significant increase in demand for euro-backed stablecoins despite the regulatory changes.”
Against this backdrop, Tether has determined to assist the launch of recent stablecoins appropriate with MiCA. In reality, the firm invested in Quantoz Payments for the launch in Europe of the secure cryptocurrencies EURQ and USDQ, as additionally reported by CriptoNoticias.
This article was created utilizing synthetic intelligence and edited by a human Editor.
