Tether's market capitalization decreases because the mica regulations come into force

• Tether's market capitalization sank by 1.5 %in the past seven days, since on December 30th more comprehensive mica regulations for crypto-asset service providers in the euro zone came into force.
• These regulations include some strict rules for global stablecoin providers, since some European stock exchanges have started to remove USt.

The leading StableCoin Tether (USDT) has lost 1.5 % of its market capitalization in the past seven days and fell from $ 139.46 billion to $ 137.32 billion after December 30th.

According to the regulations, European stock exchanges have started to delete USDT from their crypto offer, which contributes directly to the decline in the market share and the capitalization of USDT.

mica rules around stable coins

The markets in Crypto Assets (Mica) Ordinance was adopted in June 2024, but the more comprehensive regulatory framework for crypto-asset service providers came into force on December 30th.

According to the new framework, stable coins such as USDT and USDC are regulated in order to limit their dominance within the EU and to promote the use of stable coins for billing and transactions.

While stable coins are not completely prohibited on the US dollar (you can store users in decentralized wallets), they are subject to stricter rules (e.g. maintaining a 30 percent reserve for traditional banks, which could affect the cash flow) and are limited to registered exchanges within the USA EU.

Comments from industry insiders remain unimpressed because the majority of the USDT trade and USDT transactions come from Asia and the USA, where Usdt is not subject to any restrictions.

Meanwhile, Paolo Ardoinino, CEO of Tether, retired a contribution in which he pointed out that the daily trade volume of Tether exceeded the second largest stable coin by 14 times.

🔥 https://t.co/iaoakfjvm8

- Paolo ardoinino 🤖🍐 (@paoloardoinino) 31. December 2024