New rules will require issuers of stablecoins to have a license

OKX to delist USDT trading pairs in EU amid crypto regulation adoption

19.03.2024 - 09:57

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3 min

What’s new? Crypto exchange OKX will stop supporting trading pairs with the largest-capitalization USDT stablecoin from issuer Tether in the European Economic Area (EEA) as the EU prepares to adopt a comprehensive regulatory framework for digital assets. At the same time, the exchange introduced other services for customers in the EEA, expanding fiat payment options and adding new trading pairs with euros.

Material by The Block

What else is known? The delisting of USDT trading pairs comes months ahead of the EU’s planned implementation of the Markets in Crypto Assets Regulation (MiCA, which will come into full effect on December 30, 2024, and will restrict the use of certain stablecoins in the region).

OKX customer service said USDT became unavailable to traders in the EEA on March 14. However, according to the exchange’s website, pairs with the asset in the region were also available to traders on March 15. The only pairs with USDT available on the spot market are USDT/EUR and USDT/USDC.

Some local traders received an e-mail notification from OKX about delisting due to the upcoming change in the regulatory regime. However, the email did not specify which regulations were in question: “Please note that not all tokens are available in all markets due to regulatory requirements.”

In comments to the media, OKX representatives also stated that the change affects only a small part of the user base.

Now, for spot trading in the EEA on OKX will be available only in trading pairs with euro and USDC, the second by capitalization stablecoin from the Circle issuer. The exchange plans to add around 30 new trading pairs in contrast to the delisting of USDT.

MiCA’s stablecoin rules are expected to be in place from June 2024 — pending the full legislative package. Under these rules, only credit institutions and Electronic Money Institutions (EMI) licensed companies will be allowed to issue stablecoins.

EU authorities have agreed to tighten controls on crypto transfers over 1000 EUR

EU authorities have agreed to tighten controls on crypto transfers over 1000 EUR

The new initiative also includes risk mitigation measures for transactions using non-custodial wallets

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Circle applied for an EMI license last December after undergoing an interim registration process in France as a digital asset service provider. At the time, the company noted that the effort would help it comply with the MiCA regime.

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