- OKX has halted trading pairs involving Tether’s USDT stablecoin for users in the EU and EEA
- The move reflects broader regulatory concerns, particularly with the EU’s impending implementation of MiCA
- Despite the delisting, USDT remains available for deposits, withdrawals, and over-the-counter transactions on OKX’s platform
OKX yesterday announced the cessation of support for trading pairs involving Tether’s USDT stablecoin for users residing in the European Union and the European Economic Area (EEA). Effective Monday, OKX’s platform now exclusively offers spot crypto trading with USDC and euro pairs, with USDT only able to be traded against USDC and euro pairs. The change in policy came to light after a trader on the platform shared a note from OKX’s support staff regarding the regulatory compliance and security rationale behind the decision.
OKX Doesn’t Need USDT
Tether has always been a controversial entity in the crypto space, with a market cap of USDT exceeding $100 billion, making it the largest stablecoin by trading volume globally. It serves as a crucial component of the cryptocurrency trading infrastructure, particularly as the most liquid trading pair for Bitcoin and other digital assets, but it seems that OKX does not favor it as much as other exchanges.
In response to inquiries by Coindesk, an OKX spokesperson explained that the move was driven not by any fear over the viability of the stablecoin but instead by the exchange’s strategic focus on bolstering euro-denominated liquidity within the region:
This year our focus is to expand EURO pair liquidity and become the preferred venue for EURO to crypto spot trading. We evaluated this decision and delisting the current USDT pairs only impacts a small subset of our user base. Importantly, we’ve recently expanded our product offering in the EEA by introducing a variety of Euro fiat onramps and Euro pairs.
The spokesperson further clarified that while existing USDT pairs were delisted, the impact was limited to a small subset of OKX’s user base and USDT remains accessible on the OKX platform for users within the EEA. It can still be used for deposits, withdrawals, and transactions via over-the-counter (OTC) trading.
OKX might turn out to be the first domino to fall for Tether, with the European Union’s forthcoming implementation of MiCA (Markets in Crypto-Assets), a comprehensive digital asset regulatory framework, scheduled for later this year. MiCA has the potential to impact which coins exchanges can and cannot list, with stablecoins under particular scrutiny.
