What is the Recent Tether (USDT) FUD? Is Panic Necessary? Here's What You Need to Know

Delisting of Tether (USDT)
One of the most urgent effects of the MICAr is the delisting of Tether's USDT, which is the world's largest stablecoin according to market value. As of December 30th, USDT will no longer be available on most centralized exchanges in Europe.

Although USDC (USD Coin) is accepted and will remain in use, the loss of USDT could disrupt trading pairs and liquidity. This could potentially reduce options for users in the EU, and more stablecoins may follow.

What Does This Mean for Users?
Transfers from Exchange to Exchange: Personal data will now accompany every transaction. This lack of anonymity raises concerns about where private information may go and how securely it will be handled.
Hot and Cold Wallets: Associating wallets with identities undermines the privacy traditionally offered by crypto wallets. Even offline wallets that do not provide direct entry or exit ramps for fiat currency will face KYC requirements.
MICAr advocates argue that tighter regulations will combat criminal activities such as money laundering and tax evasion. However, research shows that personal wallets do not significantly contribute to these risks as they do not involve fiat currency inflows and outflows. Critics claim that these measures disproportionately affect privacy-conscious users and create a worrisome precedent for global crypto governance.