OKX has decided to remove Tether trading in countries of the European Economic Area, anticipating the new EU regulations on digital assets.
OKX exchange has announced the suspension of Tether (USDT) trading within the countries of the European Economic Area (EEA). This decision precedes the introduction of new cryptocurrency regulations by the European Union (EU).
According to information on the exchange’s website, starting from March 15th, Tether is no longer available for customers operating within the EEA.
The suspension of USDT trading comes months before the enforcement of the new Markets in Crypto-Assets (MiCA) regulations by the EU. MiCA, expected to come into effect on December 30, 2024, will impose limitations on the use of certain stablecoins within the European territory.
Under the MiCA requirements, funds received in exchange for the stablecoin must be safeguarded according to specific prudential supervisory requirements, and at least 30% of them must be deposited in separate accounts for small stablecoins in terms of market cap (60% for large-capitalisation stablecoins). The remaining portion can be invested in low-risk and highly liquid instruments.
Furthermore, customers are granted a redemption right, which can be exercised at any time, obliging the issuer to liquidate the corresponding currency equivalent.
Currently, Tether has not announced compliance with the MiCA regulation.
In anticipation of this suspension, OKX has expanded its product offerings within the EEA in previous months, introducing a variety of options for Euro trading for European customers.
