Tether USDT Removed from EU Exchanges as MiCA Takes Effect July 1

Tether's USDT stablecoin was removed from licensed European exchanges on July 1 as the EU Markets in Crypto-Assets Regulation (MiCA) came into force. Approximately $185 billion in USDT became unavailable on compliant platforms after Tether declined to submit the required electronic money issuance application. MiCA mandates stablecoin issuers hold 60% of reserves in European banks — a requirement Tether CEO Paolo Ardoino publicly rejected as creating unacceptable risk. Circle positioned its USDC and EURC stablecoins as the only MiCA-compliant products among the ten largest stablecoins, while only 17% of approximately 1,200 pre-MiCA registered crypto firms obtained full crypto-asset service provider (CASP) authorization under the new framework.

Circle Secured MiCA Compliance for USDC and EURC

Circle prepared for MiCA enforcement well in advance. The company ensured full compliance for its USDC and euro-denominated EURC stablecoins. Among the ten largest stablecoins, Circle is the only issuer to comply with the new requirements.

Tether's management chose to focus on non-EU markets rather than adjust its reserve model to meet MiCA standards. CEO Paolo Ardoino defended this decision, explaining that the 60% European bank reserve requirement creates risks Tether was unwilling to accept.

BNY Mellon Launched USDC Support One Day Before Deadline

One day before the July 1 deadline, BNY Mellon announced the launch of USDC support. Institutional clients can now hold, transfer, issue, and burn USDC through BNY's service. Combined with USDT's removal from European exchanges, this gave Circle regulatory and institutional momentum on two continents in a single week.

Only 17% of Pre-MiCA Firms Obtained Full CASP Authorization

Of approximately 1,200 crypto firms registered nationally before MiCA, only about 210 received full crypto-asset service provider (CASP) authorization — a mere 17%. Licensed platforms can no longer provide liquidity through USDT, leaving Circle positioned to fill the vacant space with its compliant stablecoin products.

FAQ

What did Tether do when MiCA came into force on July 1?
Tether declined to submit the electronic money issuance application required under MiCA, resulting in approximately $185 billion in USDT becoming unavailable on licensed European exchanges. CEO Paolo Ardoino stated that MiCA's requirement to hold 60% of reserves in European banks creates unacceptable risks.

How did Circle prepare for MiCA enforcement?
Circle ensured full MiCA compliance for its USDC and euro-denominated EURC stablecoins well in advance of the July 1 deadline. Circle is the only issuer among the ten largest stablecoins to comply with the new requirements, and BNY Mellon launched institutional USDC support one day before enforcement began.