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Users who hold EURT have one year to redeem their funds.
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The decision aligns with the MiCA Law, which regulates stablecoins in the EU.
Tether, the company behind the world’s largest stablecoin, USDT, announced that it has suspended support for EURT, its euro-based stablecoin.
In a release published this Wednesday, November 27, they reported that they made the decision “after careful consideration.”
“As such, Tether has stopped issuing EURT, with the last acquisition request processed in 2022, and new EURT issuance requests are no longer accepted,” the company says.
The company said that users who own EURT on all networks They have until November 27, 2025 to redeem their holdings.
Although they do not mention it explicitly, this measure is taken in the context of the MiCA Law, that regulates the stablecoins in the European Union.
They add that the decision to stop issuing EURT “aligns with our broader strategic direction, taking into account the evolution of regulatory frameworks surrounding stablecoins in the European market.”
The entry into force of MiCA in the middle of this year led to USDT withdrawal of the European market, as reported by CriptoNoticias. In this sense, Tether expressed that until “a more risk-averse framework is established, one that encourages innovation and offers the stability and protection that its users deserve,” they will choose to “prioritize other initiatives.”
This change in Tether’s strategy also reflects the difficulties faced by stablecoins in the EU. As CriptoNoticias has reported, USDT support has been withdrawn on various exchanges operating on the territory of the EU to avoid risks of infringements.
Recently, this medium reported on a 70% drop in euro stablecoin operations due to MiCA. According to Kaiko analysts, “this indicates that there has been no significant increase in demand for euro-backed stablecoins despite the regulatory changes.”
Given this scenario, Tether has decided support the launch of new stablecoins compatible with MiCA. In fact, the company invested in Quantoz Payments for the launch in Europe of the stable cryptocurrencies EURQ and USDQ, as also reported by CriptoNoticias.
This article was created using artificial intelligence and edited by a human Editor.
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