Yeap you are right. Tether isn't totally banned. But Central Exchanges that want to comply with the MiCA regulation in order to keep functioning in Europe have to delist the assets (stablecoins) that don't fulfill the requirements of MiCA.

So you, as a EU citizen, still can hold this assest. But you will find hard to exchange them for fiat in a regulated Exchange.

As far as I know Tether is working now to comply with the MiCA regulation. However, they have not yet committed to applying for EU authorization, and it remains to be seen how they will fully adapt to these new regulations.