Tether’s USDT is no longer available on many regulated cryptocurrency exchanges in the European Union following the final implementation of the Markets in Crypto-Assets regulation.
The July 1, 2026 deadline marked the end of the transition period for stablecoin providers operating under MiCA. As a result, regulated platforms must ensure that the stablecoins they offer comply with the European Union’s requirements.
USDT Support Ends on Regulated EU Exchanges
Major MiCA-licensed exchanges, including Coinbase, Kraken, and Crypto.com, had already removed or restricted USDT trading for European customers before the final deadline.
Coinbase Europe removed USDT in December 2024, while Crypto.com followed in January 2025. Binance later restricted several USDT trading pairs for European users in March 2025.
Kraken initially moved USDT into a sell-only phase before suspending broader support.
These changes mean that Tether’s USDT currently has a limited path onto regulated European trading platforms.
Why Tether Did Not Pursue MiCA Approval
Tether decided not to complete the authorization process required for USDT to operate as a MiCA-compliant electronic money token.
CEO Paolo Ardoino has criticized certain elements of the regulation. In particular, he has raised concerns about requirements that could force stablecoin issuers to hold a large percentage of their reserves in European bank deposits.
According to Ardoino, placing up to 60% of reserves in EU-supervised banks could create financial and systemic risks.
Tether’s reserve structure relies heavily on U.S. Treasury securities and other global assets. Therefore, moving a significant portion of those funds into European bank deposits would conflict with its existing business model.
EURT Withdrawal Signaled Tether’s EU Strategy
Tether had already discontinued its euro-backed EURT stablecoin in 2024. That decision was viewed as an early indication that the company was reducing its exposure to the European market.
Only a limited number of MiCA licenses were reportedly approved across the bloc before the July 1 deadline. Meanwhile, some cryptocurrency businesses have increasingly considered alternative regulatory hubs, including Dubai.
Rather than restructuring USDT to meet the European framework, Tether chose not to pursue direct MiCA authorization.
USDC Gains an Advantage in Europe
Circle has taken a different approach. The company secured an Electronic Money Institution license in France, allowing its services to operate across all 27 EU member states.
As a result, USDC and Circle’s euro-backed EURC have gained a major competitive advantage on regulated European exchanges.
The removal of USDT could encourage more platforms, traders, and market makers to use USDC-based trading pairs. However, rebuilding liquidity around alternative stablecoins may create temporary disruption.
Market makers that previously relied on USDT pairs will need to reorganize their order books and liquidity strategies.
Tether Maintains an Indirect European Presence
Although USDT has lost access to regulated EU exchanges, Tether is not completely withdrawing from the European cryptocurrency industry.
Companies such as StablR and Oobit have introduced MiCA-compliant tokens, including EURR and USDR. These assets use Tether’s Hadron tokenization infrastructure.
This approach could allow Tether to maintain an indirect presence in Europe without seeking direct MiCA approval for USDT.
European Banks Develop a Euro Stablecoin
A group of 37 European banks, reportedly including BNP Paribas and ING, is also developing a unified euro-backed stablecoin known as Qivalis.
The project aims to reduce Europe’s dependence on U.S. dollar-backed stablecoins such as USDT and USDC.
If successful, the initiative could strengthen euro-denominated digital payments and give European financial institutions a larger role in the stablecoin sector.
MiCA Reshapes the European Stablecoin Market
MiCA is creating a more unified regulatory framework for cryptocurrency businesses across the European Union.
Supporters believe the rules will improve consumer protection, transparency, and financial stability. Critics argue that strict reserve and licensing requirements may reduce competition and push cryptocurrency companies toward other regions.
USDT’s removal from regulated EU exchanges represents a major change for European cryptocurrency traders. It also creates an opportunity for USDC, EURC, and future euro-backed stablecoins to capture a larger share of the market.
