Key facts
- OKX Europe introduced a feature for users to convert USDT to USDC.
- This move is in response to the EU's Markets in Crypto-Assets (MiCA) regulations.
- Tether's USDT has not received authorization under the MiCA framework.
- USDC is considered a MiCA-compliant stablecoin alternative.
- Tether CEO Paolo Ardoino has expressed concerns about MiCA's reserve requirements.
OKX Europe has introduced a new feature enabling its European customers to convert Tether's USDT stablecoin into USDC, a move designed to comply with the European Union's Markets in Crypto-Assets (MiCA) regulations. The exchange offers a one-way conversion path for users who may face restrictions on USDT due to MiCA's framework, which took full effect on July 1. Tether has not sought authorization under MiCA, with CEO Paolo Ardoino citing concerns over reserve requirements that mandate holding a portion of reserves with European credit institutions. Ardoino has described the framework as "very dangerous" for stablecoins and indicated Tether would only reconsider authorization if MiCA becomes safer for issuers and consumers. This stance has led many European crypto platforms to restrict USDT deposits, delist trading pairs, or automatically convert customer balances. Despite USDT's global dominance, accounting for approximately 59% of the nearly $310 billion stablecoin market, platforms operating under MiCA are increasingly shifting towards compliant alternatives like USDC. OKX Europe serves customers across 30 EU and European Economic Area countries with its MiCA license. Digital banking platform Revolut recently announced it would stop supporting USDT in the EEA and Switzerland by August 31, converting remaining balances to base currency.