Tether Demand Stays Strong Despite EU Delistings and Regulatory Hurdles
The CEO of CryptoQuant, a digital asset analytics firm, has provided evidence suggesting that demand for Tether (USDT) remains strong, even as regulatory challenges in the European Union (EU) lead to its removal from several crypto exchanges.
Recent changes stem from the EU’s Markets in Crypto Assets (MiCA) regulation, which took effect on December 30th. MiCA mandates that stablecoin issuers secure specific licenses to operate within the region.
Tether has yet to meet these requirements, prompting exchanges to delist the dollar-pegged stablecoin. As a result, USDT’s market capitalization has slipped from $140.5 billion to $138 billion over the past week, raising concerns in the crypto community.
READ MORE: ECB Pushes for Digital Euro as U.S. Advances Global Stablecoin Strategy
Additionally, USDT briefly lost its 1-to-1 peg with the US dollar, trading at $0.998 at the time of reporting. Despite these challenges, CryptoQuant CEO Ki Young Ju sees no significant decline in Tether’s market presence.
Sharing data on social media, he highlighted that USDT reserves on exchanges remain robust. An increase in exchange reserves is typically viewed as a sign of sustained buying pressure for stablecoins.
While fears surrounding Tether’s regulatory hurdles have caused uncertainty, the data suggests that its core demand remains unaffected, even amid growing scrutiny and delistings in the EU market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
