"This move offers much-needed flexibility for EU users struggling with USDT restrictions," said a crypto trader reacting to OKX Europe's new service. The exchange now allows customers across 30 European Union and European Economic Area countries to deposit Tether’s USDT and convert it into USDC, which complies with the Markets in Crypto-Assets (MiCA) regulations. Unlike automatic swaps some platforms have adopted, OKX gives users full control over when to execute the conversion, catering to those whose current providers have ceased accepting USDT or who want to switch before compliance deadlines.
Operating under a MiCA license, OKX Europe’s service targets a growing demand as many European exchanges scale back USDT support due to Tether’s refusal to seek MiCA approval. The regulation’s final transition period ended on July 1, prompting platforms to limit USDT deposits and trading pairs while steering users toward Circle’s USDC, which meets EU regulatory standards. OKX’s tool only facilitates USDT deposits and one-way conversions to USDC, eliminating any option to revert back to Tether tokens.
Despite these restrictions in Europe, USDT remains dominant globally. DeFiLlama data shows Tether commands about 59% of the $310 billion stablecoin market, holding approximately $184 billion in market value, far surpassing USDC’s $73 billion. Still, European market shifts have seen competitors like Revolut announce plans to end USDT support by August 31, requiring users to offload or withdraw their USDT holdings before forced conversion to local currency.
Tether CEO Paolo Ardoino has stood firm against MiCA approval, criticizing the framework’s reserve requirements for forcing issuers to hold part of their reserves within European credit institutions, which he claims raises additional risks. This stance contrasts with Binance’s withdrawal from the European market, leaving licensed exchanges such as OKX Europe vying to capture users impacted by the tightening MiCA rules.
