New requirements for Tether

Tether got into trouble.

Let me remind you that the controversy between Ripple and Tether managers has just passed. Without going into detail, Ripple claims that the US government is preparing an attack on Tether, and the latter denies any disagreement with the Americans.

But if the problems in North America still exist only in theory, they are quite material on the European continent.

The European Banking Authority completes EU crypto rules known as MiCA. The current version of the document contains serious restrictions on stablecoins.

Crypto companies are preparing in advance for future restrictions. Initially, the OKX Crypto Exchange banned most USDT transactions in Europe, leaving only the options to open USDT deposits and withdraw USDT. Of course, there is still an over-the-counter market, but it will not be able to compensate for stock losses.

And so, Kraken said that it was going to make the same decisions. In response, a representative of Tether advised the crypto exchange to think about customers.

Indeed, excommunication from European exchanges would be quite painful for Tether. The company is in negotiations with the European regulator, but it does not seem to have much success.

In the past, serious claims against dollar-denominated stablecoines were raised in the US Congress. Their concern is understandable, they fear that the uncontrolled release of $- stablecoines will actually be a latent dollar issue.

Tether assures that its USDT has 100% security, and therefore no latent emission will occur, but the exact composition of this security hides, so serious questions to its quality remain.

In fact, the accelerated work of the regulators was to be expected, given the sharp increase in USDT turnover. This is unpleasant, but it looks like in Europe Tether will have to adapt to new requirements. 

#Tether #USDT #dollar