Bogdan Cretu USDT has been the go-to stablecoin for transactions for years. But that time is ending, at least in Europe. With the EU’s Markets in Crypto-Assets (MiCA) regulation in place, USDT is being phased out, leaving many caught in an unexpected situation.
This isn’t just another rule change; it directly affects people who have relied on USDT for payments. Whether you’re a trader, a business, or a publisher, this shift means you’ll have to adjust.
So, what’s happening under MiCA regulations, and what does it mean for you?
Table of Contents
How MiCA Regulations Impacts Stablecoins and Payments
Markets in Crypto-Assets, or MiCA, is a new set of rules the European Union made to control digital assets like stablecoins. There haven’t been clear laws about many cryptocurrencies until now, making it hard to control risks and keep users safe. With MiCA, the goal is to ensure that stablecoins are regulated like other financial goods.
A major reason for these changes is that more people are using stablecoins as a payment method. Thus, there have been concerns in the past about whether some stablecoins have adequate reserves, which led officials to introduce clear regulations.
Tether, the company behind USDT, needs an electronic money (e-money) license to continue operating in Europe. This license is now required for stablecoins, proving they comply with financial rules and have adequate backing. Since Tether hasn’t obtained it, USDT no longer meets the legal standards.
So, sites dealing with stablecoins must determine which comply with MiCA and which don’t.
These changes might be hard to deal with right now, but they are impacting digital payments in Europe. As the way stablecoins are used evolves, people and companies will need to adapt.
Coinzilla’s Updated Payment Methods
As USDT payments are no longer available with our payment processors, all transactions on Coinzilla will be handled through alternative methods and other digital assets. Thus, we recommend that all publishers receiving payments and advertisers funding campaigns in USDT update their addresses to receive payouts in USDC instead.
If you were previously receiving payments in USDT as a publisher, you’ll need to update your payment details to one of the following options:
- Crypto wallet: If your preferred payment method is USDT, you need to update it to USDC or another accepted payment method.
- Bank transfer: Alternatively, you can opt for bank transfers, and payments will be sent directly to your bank account.
For advertisers, USDT is no longer accepted as a payment method via CoinGate. However, you can still fund your Coinzilla account using:
- Other cryptocurrencies (via CoinGate): Coinzilla accepts all cryptocurrencies available on CoinGate. For an updated list, check CoinGate’s official website.
- Credit cards, such as Visa, Mastercard, and others.
- Bank transfer.
To avoid disruptions, publishers should check and update their payment details as soon as possible, and advertisers should select an alternative payment method and contact their account manager for confirmation.
If you need assistance, Coinzilla’s support team is available to help.
FAQ
Due to the MiCA regulations, there are no plans to reintroduce USDT payments in the near future. CoinGate decided to stop USDT transactions in response to new regulations, and unless there are significant changes to the legal framework, USDT will remain unavailable.
Switching to an available payment method does not incur extra fees. However, publishers should ensure their bank or wallet details are correct to prevent payment issues.
Any future updates regarding payment methods will be communicated directly through Coinzilla’s official channels, including emails, the platform’s dashboard, and the official website.
MiCA requires stablecoin issuers to meet strict reserve, transparency, and licensing standards. Since USDT does not currently meet these requirements in the EU, it cannot be used by regulated platforms for payments or settlements.
Publishers and advertisers should update their payment settings to a compliant alternative, such as USDC or bank transfers. This ensures uninterrupted payments and full compliance with EU regulations.
Yes, holding USDT in a personal wallet is not prohibited. MiCA mainly affects how regulated platforms, payment processors, and businesses can use or support USDT for payments and services.
Conclusion
It is no longer possible to pay in USDT, so people who rely on it must find other payment methods. Now that rules have been put in place, the way people and companies use stablecoins in Europe is changing.
This change may be challenging, but it’s part of a broader shift in crypto. As new rules affect the market, stablecoins that meet these requirements will become the most popular choice. This will change the way digital purchases work in the future.
