Why Should You Care?
If you use stablecoins like USDT or USDC, you need to know about major changes in 2024-2025.
Here's the short version:
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USDT can no longer be traded on exchanges in Europe (as of December 2024)
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The US passed its first stablecoin law (July 2025)
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USDC is legal almost everywhere, but USDT is facing more restrictions
Let's break down what happened and what you can actually use where.
Quick Reference: What Works Where?
Region | USDT | USDC | DAI |
EU |  No trading | OK | Delisted |
USA | Banned in NY only | OK | OK |
Japan | Not approved | OK (approved 2025) | Not approved |
Singapore | Regulated | OK | OK |
Hong Kong | License required | OK | OK |
South Korea | Rules coming | Rules coming | Rules coming |
China | Banned | Banned | Banned |
UAE | OK | OK | OK |
Europe (EU): Why Did USDT Get Blocked?
A New Law Called MiCA
The EU started enforcing MiCA (Markets in Crypto-Assets) on December 30, 2024. The key rule: stablecoin issuers must get licensed in Europe.
Circle (makes USDC) got a license in France. So USDC still works in the EU.
Tether (makes USDT) didn't apply. They thought the EU rules were too strict. So Binance, Coinbase, and Kraken stopped letting European users trade USDT.
What Does the EU Require?
Requirement | What It Means |
100% reserves | Issue $1 coin → hold $1 in real assets |
EU bank deposits | Keep 30-60% of reserves in EU banks |
Usage limits | Over 1M transactions/day or €200M? Scale back |
Tether's CEO pushed back: "Putting 60% in EU banks is actually risky. If a bank fails, deposit insurance only covers €100,000."
What Should EU Users Do?
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Holding USDT? You can still withdraw it. Consider swapping to USDC
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Buying new? Use USDC or euro stablecoins (EURC)
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Deadline: July 1, 2026 for all exchanges to comply—more changes possible
United States: First Federal Stablecoin Law
What Is the GENIUS Act?
On July 18, 2025, the US passed the GENIUS Act—the first federal law specifically for stablecoins.
In simple terms:
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100% reserves required (only cash, T-bills, and bank deposits)
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Refund within 1 day guaranteed
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Monthly reserve reports must be public
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Not a security → regulated by banking agencies, not the SEC
The law takes full effect in early 2027.
Why Is USDT Banned in New York?
New York has had its own rules since 2015 called BitLicense. Tether had a legal fight with New York in 2021 and paid $18.5 million to settle. They're now banned from operating there.
Stablecoins allowed in NY: USDC, GUSD (Gemini), PYUSD (PayPal), USDP (Paxos)
What Should US Users Do?
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Live in New York? Can't use USDT. Use USDC or PYUSD instead
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Live elsewhere? USDT works for now, but USDC is the safer bet
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Coming soon: Tether is launching a US-specific stablecoin (late 2025)
Asia: Every Country Is Different
Japan: Only Banks Can Issue Stablecoins
Since 2023, Japan requires stablecoin issuers to be banks or licensed financial companies.
USDC got approved in March 2025 through SBI (a Japanese financial firm). It's the only global USD stablecoin you can use in Japan.
USDT was never approved.
Singapore: Look for the "MAS-Regulated" Label
Singapore's central bank (MAS) created stablecoin rules. Meet the requirements, and you get the "MAS-regulated stablecoins" label.
Requirements:
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100% reserves
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Refund within 5 business days
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Monthly audits
Paxos got full approval in 2024. USDC is also available.
Hong Kong: New Law Started August 2025
Hong Kong passed its Stablecoins Ordinance in May 2025, effective August 1, 2025. If you want to issue stablecoins in Hong Kong or create HKD-pegged coins, you need a license.
First licenses expected early 2026.
South Korea: Still Preparing
South Korea passed the Virtual Asset User Protection Act in July 2024, but it doesn't have specific stablecoin rules yet.
The Digital Asset Basic Act (DABA) coming in late 2025 will add those rules. Interestingly, Korea is going with a bank-first model—KB Kookmin, Shinhan, and Woori banks are testing KRW stablecoins.
China: Total Ban
China banned all crypto in 2021 and explicitly criminalized stablecoins in 2025. They're pushing the digital yuan (e-CNY) instead.
Other Major Countries
UK: Wait Until 2027
The UK doesn't have stablecoin-specific rules yet. Full implementation is expected October 2027. Until then, it's unregulated—which means no restrictions, but also no protections.
UAE (Dubai, Abu Dhabi): Crypto-Friendly
The UAE welcomes crypto. Both USDT and USDC work fine. In 2025, USDT got official recognition in Abu Dhabi. Tether is also developing a dirham (AED) stablecoin.
Canada: Only USDC Is Fully Approved
In December 2024, Canada registered Circle (USDC issuer) as its first approved stablecoin issuer. Other stablecoins have a $30,000 annual purchase limit for retail buyers.
Stablecoin Comparison
USDC (Circle) — Legal in Most Countries
Region | Status |
EU | Approved (first to comply) |
USA | Approved (including NY) |
Japan | Approved (2025) |
Singapore | Approved |
Canada | Approved |
UAE | Approved |
Reserves: Managed by BlackRock, held at BNY Mellon
Transparency: Listed on NYSE (June 2025)
→ Safest choice from a regulatory perspective
USDT (Tether) — Most Used, But Facing Restrictions
Region | Status |
EU | No trading |
USA (NY) | Banned |
Japan | Not approved |
UAE | OK |
Most other places | OK |
Market cap: ~$139 billion (#1)
Issues: Reserve transparency concerns, S&P rating "weak"
Coming: US-specific stablecoin planned for late 2025
→ Highest volume, but regulatory risk is real
PYUSD (PayPal) — Growing Fast in the US
Region | Status |
USA | Federal approval |
EU | Not approved |
Made by PayPal, issued by Paxos. Got a federal banking license in 2025, making it the most regulated US stablecoin. But it doesn't work in Europe.
DAI — Decentralized, So It's Complicated
DAI is created by the MakerDAO/Sky protocol—code, not a company. So "who gets the license?" is unclear.
It was delisted from EU exchanges alongside USDT. Some features are restricted in the US/UK too. Still works in DeFi though.
Summary: What Should You Use?
Situation | Recommendation |
Want to play it safe | USDC |
Live in Europe | USDC or EURC |
Live in New York | USDC, PYUSD, or GUSD |
Live in Japan | USDC (only option) |
Need high liquidity | USDT (still #1 in volume) |
Prefer decentralization | DAI (accept the limitations) |
What's Coming Next
When | What |
Late 2025 | Tether launches US-specific stablecoin |
Early 2026 | Hong Kong issues first stablecoin licenses |
July 2026 | EU exchange transition deadline |
Early 2027 | US GENIUS Act takes full effect |
October 2027 | UK regulations go live |
The Bottom Line
Global stablecoin regulation is moving toward 100% reserves, licensed issuers, and consumer protection.
USDC is currently legal in the most countries. USDT has the highest volume but is facing increasing restrictions.
Whichever stablecoin you use, check the rules in your country first.