As the European Union (EU) tightens its noose around non-MiCA compliant crypto offerings, prominent industry players like Binance and Tether are rapidly losing ground in the 27-nation-cluster. On Friday, OKX said it will ramp up USDC-based offerings in the EU given that Circle is MiCA-approved in the region, but Tether is not.
Star Xu, the founder and CEO of the OKX crypto exchange, announced the development on X on Friday. Xu said, OKX users in the EU reached out the team asking for USDT-to-USDC conversions.
“In response, we’ve introduced a one-way conversion path from USDT to MiCA-compliant USDC and other MiCA-compliant stablecoins, making the transition to regulated digital dollars simple and seamless,” Xu said.
Essentially, OKX will now allow its European users deposit their USDT stablecoins to the exchange and convert them to USDC and other MiCA-cleared stablecoins.
As per the European Securities and Markets Authority (ESMA), a total of 21 stablecoins including USDC, EURe, and EURW are presently recognized as legitimate assets in the EU.
The European regulators are prioritizing euro-based stablecoins amid a pushback on the overall stablecoin ecosystem from the European Central Bank (ECB), that is batting for the digital euro CBDC.
For now, it remains unclear if Tether plans to enter the EU anytime soon. Of the total stablecoin market valued currently at $310 billion, Tether commands the majority 59 percent of the market share. USDT’s valuation stands at $184 billion — and its closest rival USDC stands at a distant second place with $73 billion in valuation.
Tether CEO Paolo Ardoino has often criticized MiCA, stating that its reserve mandates create require a portion of reserves to be held with European credit institutions — exposing issuers to risks. Ardoino has also previously called MiCA “very dangerous” for stablecoins. Tether has not yet applied for a MiCA license.
For OKX, the conversion of USDT into MiCA-compliant stablecoins is another move towards staying committed to adhering by the comprehensive European crypto guidelines.
The exchange was granted its full MiCA approval in January 2025 by Malta’s Financial Services Authority which lets it offer crypto services across the European Economic Area (EEA).
