Tether's USDT has lost regulated exchange access in the EU after MiCA's transition period ended, with Circle's USDC and EURC filling the gap.
The European Union's Markets in Crypto-Assets (MiCA) framework completed its transition period on 1 July 2026, removing Tether's USDT from regulated crypto exchanges across the bloc after the company chose not to seek authorisation under the new rules. MiCA-licensed platforms, including Coinbase, Kraken, and Crypto.com, have withdrawn USDT trading for European users, ending the token's presence on regulated order books despite its position as the largest stablecoin globally by market capitalisation, at USD 186 billion.
Under MiCA, stablecoin issuers seeking recognition as electronic money tokens (EMTs) must hold at least 60% of reserves in European bank deposits. Tether opted not to apply for this status. A company official has previously stated that the requirement creates systemic risk, given that Tether's reserve model relies primarily on US Treasury securities and other globally diversified assets rather than European bank holdings, making the framework incompatible with its existing structure.
Tether's withdrawal from the European market had been under way for some time before the July 2026 deadline. The company discontinued its euro-pegged EURT stablecoin in 2024, while exchange support for USDT declined progressively over the following months. Coinbase Europe delisted the token in December 2024, Crypto.com followed in January 2025, Binance restricted European USDT trading pairs in March 2025, and Kraken moved users to a sell-only model before ending support entirely.
In addition, licensing data illustrates the selective nature of MiCA authorisation: only 244 MiCA licences had been issued across the EU before the July deadline, and several crypto companies have instead expanded operations from jurisdictions such as Dubai rather than pursue authorisation under the bloc's framework.
USDC gains ground as Tether maintains technology partnerships
Circle took the opposite approach, securing an Electronic Money Institution (EMI) licence in France that can be passported across all 27 EU member states. This has allowed both USDC and EURC to operate under MiCA, positioning them as the primary dollar- and euro-backed stablecoins available on licensed European trading platforms. Liquidity providers that previously quoted USDT pairs have begun rebuilding liquidity around USDC, as regulated exchanges can no longer offer USDT trading within the EU.
Tether has not fully exited the region's digital asset ecosystem, however. StablR and Oobit have launched MiCA-compliant stablecoins, EURR and USDR, built on Tether's Hadron tokenisation platform, allowing the company to sustain technology partnerships without issuing a MiCA-approved stablecoin of its own.
Separately, 37 banks, including BNP Paribas and ING, are developing a joint euro stablecoin known as Qivalis, aimed at providing a regulated euro-denominated alternative as financial institutions expand their participation in digital assets.
Beyond Europe, exchange data points to shifting stablecoin demand: Bybit and OKX have reported higher Bitcoin holdings among users alongside declining USDT balances in their latest Proof of Reserves disclosures, while India's USDT premium rose above 8.5% following enforcement action against crypto remittance firms, underscoring how regional regulation continues to reshape USDT markets differently across jurisdictions.
