Tether to announce a new technology solution for the European market while canceling rumors of Coinbase

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Tether is developing a technology solution tailored for the European market. The new technology aims to address the challenges posed by the MiCA regulatory framework.

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Tether is set to introduce a new technology solution designed specifically for the European market to adapt to the evolving regulatory landscape in the region. The plan was announced amid rumors that USDT may be delisted from Coinbase in Europe.

“As we have consistently stated, some aspects of MiCA will make the functioning of EU-licensed stablecoins more complex and may introduce new risks to both domestic banking infrastructure and stablecoins,” Tether said in a statement on Friday.

“Teter is developing a technology-based solution, which we will unveil over time, and which is designed to meet the needs of the European market. We are very excited about our future product strategy,” the company added.

Coinbase has set December 30, 2024 as the deadline for stablecoin compliance in the EU. After that date, the exchange will delist stablecoins that are not listed in the European Economic Area (EEA). The change will not affect other regions.

The decision is part of Coinbase's ongoing efforts to comply with MiCA regulations. Before Coinbase, several crypto exchanges such as OKX, Bitstamp and Uphold ended services to non-compliant stablecoins in the EU before MiCA was fully implemented.

Tether CEO Paolo Arduino has previously explained that the company has been in discussions with regulators regarding the strict cash reserve obligations imposed by MiCA regulations.

Arduino warned that stricter requirements could pose systemic risks to banks and digital assets, leaving them vulnerable to mass withdrawals similar to the Silicon Valley bank situation.

While Tether said some aspects of MiCA could pose challenges to EU-licensed stablecoins, the firm praised EU regulators for creating a structured regulatory environment critical to the sector's growth.

“In Europe, USDT is very different from the more popular emerging markets and developing countries for stable coin use cases,” Teter explained. “The economy in Europe is stable and highly structured. Moreover, the regulatory landscape is improving with the launch of the MCA. Tether commends EU regulators for their efforts to establish a structured framework as they play a key role in driving growth in the sector.”

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