With low demand and stricter regulation, Tether announced the discontinuation of support for the Euro Stable Coin EURT.

Due to the increasingly stringent regulatory environment in Europe and the declining market demand, Tether announced that it will stop supporting its Euro Stable Coin EURT.

According to a statement released on Wednesday, Tether urged users holding EURT to redeem their assets before November 27, 2025, and emphasized that Tether will no longer accept new issuance applications for EURT, with the last application being processed in 2022. Tether stated:

This decision is part of our overall strategy, taking into account the increasingly strict regulatory environment for stablecoins in the European market. We look forward to providing users with protection and stability in a more robust and innovative framework in the future, but at this stage, we choose to prioritize the development of other projects.

Tether also revealed that it will shift its resources to support new innovative projects such as the MiCA-compliant stablecoins EURQ and USDQ launched by Quantoz Payments. These stablecoins are based on Tether’s physical asset tokenization platform, Hadron issuance, and aim to meet future regulatory requirements.

The impact of MiCA regulations on the stablecoin market

The European Union’s Regulation on Encryption Assets Market (MiCA) was passed by the European Parliament in April 2023 and is regulated by the European Securities and Markets Authority (ESMA). This regulation requires stablecoins issued within the European Union to comply with higher standards, including capital reserve requirements, registration, and KYC/AML (Know Your Customer/Anti-Money Laundering) regulations.

The implementation of MiCA is carried out in phases, with the first phase in June this year mainly focusing on Compliance requirements for cryptocurrency service providers. As for the regulations for stablecoins, it is expected to be fully effective by the end of this year, which also poses significant challenges to stablecoin issuers including Tether.

EURT market share shrinks, MiCA Compliance stablecoin rises

EURT, once dominated the Euro Stable Coin market with a peak Market Cap of over $500 million. However, since the implementation of certain MiCA regulations in June this year, the market share of EURT has rapidly declined. According to CoinGecko data, the current Market Cap of EURT is about $27 million.

In contrast, other MiCA-compliant stablecoins, such as Stasis’ EURS (Market Cap $133 million), Circle’s EURC (Market Cap $91 million), and Societe Generale’s EURCV (Market Cap $41 million), are rapidly rising.

The EU’s MiCA regulation on encryption coin is about to take effect, and the Euro Stable Coin EURL has ‘surrendered’ and stopped issuance.

<The article ‘Low demand, strict regulation: Tether announces the cessation of support for the Euro Stable Coin EURT’ was first published on ‘Blockchained News’>.