The European Union has mandated that Tether's USDT must be delisted from exchanges by December 30, 2024, unless it complies with the new Markets in Crypto-Assets (MiCA) regulations. This directive aims to enhance transparency and consumer protection in the cryptocurrency sector. Tether has yet to secure the necessary e-money license, which requires stablecoin issuers to maintain substantial reserves and undergo regular audits.

The potential delisting of USDT, the world's most widely used stablecoin, raises concerns about liquidity in EU crypto markets and could disrupt trading activities. Market participants fear that removing USDT will limit trading pairs, leading to increased costs for investors who rely on the stablecoin for efficient transactions. This regulatory shift reflects a broader trend toward stricter oversight of stablecoins, as the EU seeks to mitigate risks associated with fraud and money laundering.