Crypto.com has announced plans to delist Tether's USDT stablecoin for European customers starting in January 2025, in line with the new European digital asset regulations known as Markets in Crypto-Assets (MiCA).
USDT and Other Assets Delisting
Crypto.com informed users via email on January 28 that USDT purchases will be suspended by the end of January. USDT holders will have until March 31 to convert their assets into MiCA-compliant tokens. Otherwise, the platform will automatically transfer funds to a compliant stablecoin or an equivalent digital asset. Besides USDT, Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), and Pax Dollar (USDP) will also be delisted for European users. The delisting will affect three derivative tokens managed by Crypto.com as well.
Tether's Regulatory Challenges in Europe
Tether, the largest stablecoin by market cap, is facing increasing regulatory scrutiny in the EU. MiCA regulations introduce stricter rules ensuring issuers maintain transparent reserves and financial stability. Despite these challenges, Tether remains confident in meeting MiCA's compliance standards. However, Crypto.com's decision raises questions about the future of USDT on European exchanges.
Future of Stablecoins in European Market
For European traders and businesses, stablecoins have been a preferred liquidity and trading pair across many exchanges. With fewer options available, users may turn to regulated alternatives like Circle's USDC and MiCA-compliant stablecoins. In the U.S., lawmakers are also considering bills that might require Tether to hold its reserves in U.S. Treasury bonds.
Decisions made in response to MiCA requirements may impact the landscape of stablecoins in Europe and lead to changes in user preferences. Regulatory measures taken across different regions underscore an emerging trend towards stricter regulation of digital assets.
