OKX is removing USDT trading pairs to focus on EUR and USDC pairs in the European economic space, adapting its strategy to regulatory standards.
The announcement comes amidst speculation about its connection to the EU’s MiCA regulatory framework, which is expected to impose stricter requirements on stablecoins.
The MiCA legislation is set to reshape the cryptocurrency landscape in Europe by the second quarter of 2024, posing a compliance challenge for platforms like OKX.
OKX Removes USDT Pairs in Europe
According to multiple user reports, OKX has decided to no longer support trading pairs in Tether (USDT) and will exclusively focus on Euro (EUR) and USDC pairs.
Speculations and Regulatory Context
The exact reasons for this withdrawal have not been explicitly revealed, leading to speculation. Some point to the EU’s Markets in Crypto-Assets (MiCA) framework, which includes specific provisions for stablecoins. While the customer support message did not directly link the decision to MiCA regulations, it did mention ‘regulatory requirements’ as a determining factor for token availability in different geographic regions.
The issuer of USDT, Tether, is reportedly not planning to comply with the requirements of the new MiCA regulations, forcing OKX to part ways with the world’s first stablecoin in order to meet regulatory requirements in Europe.
MiCA and the Future of Stablecoins in Europe
EU regulators recently published draft rules for complaint procedures for stablecoin issuers on March 14th. While these adjustments may appear minor, they are part of a broader context of evolving legislation, potentially posing challenges for exchange platforms seeking to comply with the new directives.
The MiCA legislation, expected to be fully enforced by the end of 2024, anticipates an early implementation of rules regarding stablecoins as early as the second quarter of 2024.
