USDT is officially exiting Europe! The MiCA fire has spread from exchanges to stablecoins. Today, Europe’s largest digital bank, Revolut, announced it will delist USDT on July 6, citing that USDT does not fully comply with the EU’s MiCA regulations. Besides Revolut, other crypto-related institutions in Europe are also gradually ceasing support for USDT, signaling Tether’s complete withdrawal from the European market. But rather than Europe kicking out Tether, it’s more accurate to say that Tether is choosing to leave Europe. Tether has consistently made it clear that it will not apply for or comply with MiCA. In previous interviews, Tether’s CEO openly criticized MiCA’s rules as highly unreasonable and fundamentally flawed, claiming they could introduce systemic risks to stablecoins. He even labeled MiCA as a bad piece of legislation. One of MiCA’s requirements is that at least 60% of reserve funds must be held in independent accounts at EU banks. However, major banks like UBS are unwilling to handle stablecoin-related business, forcing issuers to turn to smaller banks. These smaller banks often lend out the funds, so if there’s a redemption run exceeding 20%, stablecoin issuers would need to quickly raise cash. But if the banks don’t have enough liquidity, it could lead to bank runs and bankruptcies—similar to what happened with Silicon Valley Bank. This could create a dual death spiral of stablecoin crises and banking crises under MiCA. The CEO believes that the essence of the MiCA legislation is to push for the digital euro to control capital flows. As a result, Tether would rather give up the entire European market than compromise the interests of emerging markets globally that rely on USDT. #USDT #Tether #Crypto #MiCA #Stablecoins #Revolut #DigitalEuro