KEY POINTS
- The exchange informed European clients about the change, citing regulatory requirements
- OKX said the delisting only affects a "small subset of our user base" in the bloc
- The EU's MiCA includes comprehensive guidelines for crypto-related businesses that want to operate in the bloc
Cryptocurrency spot and derivatives exchange OKX has delisted Tether (USDT) pairs in Europe amid the European Union's preparations for the adoption of a regulatory framework, which may include stringent regulations for stablecoin issuers.
News of the delisting blew up on X (formerly Twitter) Monday after a trader posted a notice from OKX customer support wherein the team said the "modifications were essential for us to comply with regulations and uphold the security of our platform."
Breaking: @Tether_to $USDT pairs have been removed by @okx in the EU 👀
— MartyParty (@martypartymusic) March 18, 2024
Only $EUR and $USDC @circle pairs now allowed. Huge news. pic.twitter.com/E1HNHRaLkB
"We would like to inform you that the availability of USDT trading pairs in your current region has been discontinued. Please note that not all tokens are supported in all markets due to regulatory requirements," the support notice said.
An OKX spokesperson confirmed to multiple outlets that the exchange was ceasing support for USDT trading pairs in the region months ahead of the bloc's implementation of the Markets in Crypto-Assets Regulation (MiCA), which will be adopted in December.
As of Monday, the world's fourth-largest crypto exchange by trading volume only offers spot crypto trading with USD Coin (USDC) and euro pairs, while USDT is only allowed for trading against USDC and euro, as per CoinDesk.
The exchange also noted that the delisting "only impacts a small subset of our user base" and it continues to focus on expanding "EURO pair liquidity and become the preferred venue for EURO to crypto spot trading."
Tether, the world's largest stablecoin by market capitalization, has yet to release an official statement regarding the delisting.
The delisting comes about a week after the European Banking Authority (EBA) issued draft rules under the MiCA that provides stablecoin issuers with guidelines on how to manage customer complaints. The draft will be submitted to the European Commission for approval at the end of June and will be reviewed by the European Parliament and Council before it is published in the bloc's repository of existing laws.
European lawmakers on April 2023 passed the MiCA, the world's first comprehensive crypto regulatory framework, after bloc members approved it. Mairead McGuinness, the EU's financial services commissioner, has urged other countries to make the MiCA a "model" for their work in creating their own crypto regulations. "Global convergence is absolutely key," he said.
The European Union had been monitoring stablecoins even before the passing of MiCA's, especially following the spectacular downfall of the TerraUSD (UST), which was founded by disgraced blockchain mogul Do Kwon.
