Tether’s USDT is being restricted for European Economic Area users as major exchanges realign their offerings to comply with the EU’s MiCA framework.
Exchange Adjustments Under MiCA
Binance, Coinbase and Kraken have all issued updated notices that limit the availability of non‑MiCA‑authorized stablecoins. The platforms now display only those tokens that satisfy the new authorization and reserve‑holding criteria, forcing investors to choose compliant alternatives.
Impact on USDT Versus Competing Stablecoins
USDT, which typically trades at a near‑parity price of $1.00, is the most affected because Tether has not secured MiCA approval. In contrast, Circle’s USDC and its euro‑pegged counterpart EURC, each priced around $1.00 and €1.00 respectively, remain accessible and are promoted as regulated options for crypto investors.
Future Compliance Milestones
The next critical deadline for crypto‑asset service providers is the final CASP compliance cliff on July 1 2026. Until that date, European traders must navigate a market where only MiCA‑authorized stablecoins retain full functionality on regulated exchanges.