On January 1, 2025, the second phase of the Crypto Market Regulation (MICA) came into effect in the European Union. This phase focuses on the regulation of virtual asset services suppliers (PSAVs such as exchanges), and places strict requirements on stubcoins operating within that framework.
Therefore, stable currency that does not comply with MICA law regulations You face the risk of dazzling of platforms that are regulated in that order. The box was fitted with USDT and was issued by Tether Company.
Exchanges such as Coinbase and OKX have already taken steps in this regard, eliminating USDT from the list for European users, but as reported by Cryptonoticias, Binance announced that the same pass will continue as of March 31, 2025.
USDT is linked to US dollars and falls into a MICA defined category as “Electronic Money Tokens” (EMT). To operate legally, Tethers must be licensed as the EU’s electronic money institution and maintain full liquid reserves at the European Bank.
The exchange that limits the likelihood of trading in European USDT pairs has generated an uncertainty scenario that forces users in that region to rethink their strategies in relation to the utility of their stable currency. In that context, what options are left for those who still have or want to use USDT in Europe?
Manage your USDT with your personal wallet
One of the most powerful options for European USDT holders is to store them in personal wallets such as meta masks, ledgers and trust wallets.
MICA does not directly regulate cryptographically active ownership by individuals, but focuses on centralized service issues and suppliers. This means that if a user has USDT in a self-limiting wallet, that is, if that user controls a private key, those USDTs Controlled without direct regulatory interference. Private keys, an alphanumeric chain that guarantees access to funds, act as shields against regulations affecting third parties.
This alternative offers quietness to those who don’t plan to work aggressively in USDT, while preferring to keep it as a reserve of value or wait for Tether to resolve their situation with MICA. However, the practical utility of this option depends on the platforms, applications, and how these funds access the companies they evolve. While it’s easy to store USDT in your wallet, additional steps may be required to get it out of there to interact with the regulated ecosystem.
For example, via a function swap (Exchange) For wallet metamasks or trust wallets, users can convert those USDTs to other cryptoactives, such as Ethher (ETH), and therefore introduce them to the market.
A similar pass allowed users who wanted to get tther stablocoin while in Europe to reverse the exchange into USDT ether.
Personal transfer
Another possibility linked to a wallet with self-ocastodiasis is: transfer peer to peer (P2P, people by person). To send USDT to a friend, family, or commercial partner, you must perform the transaction using a public address (a single chain that identifies the wallet on your network) and a wallet. As previously explained, MICA does not interfere with these operations as no regulated service providers are involved.
This option is ideal for informal payments and small transactions, but its scope is limited. Without access to exchanges to convert USDTs into Fíat or other assets, their use is restricted to those already operating within the cryptocurrency ecosystem. Furthermore, P2P transfers do not solve large-scale liquidity issues. This is an important aspect for largely dependent traders and businesses.
The simplicity of P2P is in contrast to its relative separation. Direct shipping is still working, but USDT’s true utility depends on how users integrate it In the remaining marketThe challenge of MICA becoming complicated when regulating traditional exchange doors.
Use USDT on the Defi platform
According to 22 considerations in the MICA regulations, “If cryptographically active services are fully decentralized and provided without intermediaries, they are not within the scope of this regulations.”
Although it is not possible to clarify the exact meaning of expressions such as “fully decentralized” or “no intermediary”, platforms that operate without identifiable central entities (such as operators or publishers) are outside MICA’s scope.
Second, decentralized finance platforms (DEFIs) or decentralized exchanges (DEXs), such as UNISWAP, AAVE, or curves, represent alternative ways for those seeking to use USDT in Europe.
These platforms operate without a centralized intermediary. This is currently located outside of MICA’s direct scope. Simply put, Defi uses intelligent contracts, a self-demand program in networks such as Ethereum to promote exchanges, loans, or liquidity offerings without the need for traditional exchanges.
You can connect your personal wallet with USDT Holdings and use the token for various operations through those platforms. For example, UniSwap, the most working DEX on the Ethereum Ecosystem, allows for ETH exchanges, other cryptocurrencies, or Stablecoins compatible with MICA.
At the same time, you can purchase USDT using UNISWAP. Users in Spain can get Tether Tokens. I’ve connected my Dex account to applications such as MoonPay and Topper. Yes, this process involves a series of additional steps that complicate the process, as mentioned in the example in Metamask.
Meanwhile, platforms such as Aave offer instruments in exchange for profit: deposit USDT as a guarantee of Provide liquidity or get a loan. For example, if a user wants to select that second option, they will receive an annual variable interest rate (APY) of 6.39% at the time of this wording.
However, access to defi depends on fíat-descriptomonedas catwalks. If a regulated exchange stops supporting USDT, funds may require rodeo. Convert USDT to another cryptocurrency in DEFI and reach the euro using a compatible platform. This process is feasible, but adds complexity and requires technical knowledge that is not controlled by all users.
For now, the EU is determined to exercise narrow surveillance in the Stablecoins market, but the exchange will continue to adjust its list according to regulatory compliance, forcing users to find alternatives to using USDT.
(tagstotranslate) ethereum(eth)
