OKX Europe has launched a one-way conversion feature allowing customers to deposit USDT and convert it into USDC, offering a regulated migration path as the European Union’s Markets in Crypto-Assets (MiCA) framework limits support for Tether’s stablecoin.
The conversion tool addresses mounting pressure on USDT across European platforms following MiCA’s completion on July 1, 2026. Tether has not obtained authorization to issue USDT under the regulatory framework, which requires stablecoin issuers to maintain reserves partly with European credit institutions. OKX Europe operates under a MiCA license serving 30 EU and European Economic Area countries.
The move mirrors broader platform responses to MiCA compliance requirements. Revolut announced it will stop supporting USDT for customers in the European Economic Area and Switzerland, with an August 31 deadline for users to sell or withdraw holdings before automatic conversion to base currency. Many other European platforms have restricted deposits, delisted trading pairs, or converted customer balances into compliant alternatives.
Tether CEO Paolo Ardoino has publicly criticized MiCA’s reserve requirements, calling the framework “very dangerous when it comes to stablecoins.” In July 2025, Ardoino posted on X that Tether would reconsider MiCA authorization only “when MiCA becomes safer for consumers and stablecoin issuers,” signaling no near-term compliance intent despite widespread platform restrictions.
Tether maintains a dominant market position globally. According to DefiLlama, USDT holds 59 percent of the stablecoin market, with a market capitalization of $184 billion out of a total stablecoin market size of $310 billion. Circle’s USDC, by contrast, holds a market capitalization of $73 billion.
The regulatory squeeze on USDT in Europe reflects the divergence between Tether’s global dominance and its regulatory status in the EU. Late 2024 marked when the EU regulatory framework began taking effect, creating a transitional period that has now concluded with MiCA’s full implementation.
OKX Europe did not specify the conversion rate or fee structure for the USDT-to-USDC feature, nor did it clarify whether the conversion tool is available to all customers or a subset of the platform’s user base. The exchange also did not announce a deadline for voluntary conversions.
