Crypto.com announced that it will remove the USDT stablecoin from its platform for European users starting January 31, 2025. This decision is part of complying with the new European regulatory standard MiCA.
Reasons and Timeline for Delisting
The decision to delist USDT was communicated on January 28, 2025, according to Crypto.news. Users will have until March 31 to convert their assets into MiCA-compliant tokens. Otherwise, funds will be automatically transferred to a compliant stablecoin or equivalent digital asset. Crypto.com obtained a MiCA license in Malta, allowing it to offer crypto services in the EU under this regulation.
Impact on Other Assets
In addition to USDT, Crypto.com will remove several other assets for European users, including Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), and Pax Dollar (USDP). Three derivative tokens on the platform will also be affected. This decision impacts only EU users; users outside the region can continue to use USDT without restrictions. Crypto.com follows the example of Coinbase, which previously delisted USDT in Europe.
Regulatory Challenges for Tether in Europe
Tether, the largest stablecoin by market cap, is facing increased regulatory scrutiny in the EU. MiCA requires stablecoin issuers to hold reserves in banks and have an e-money license from an EU member state. Despite challenges, Tether is confident in meeting compliance standards and is actively expanding its offerings. However, Crypto.com's decision raises questions about Tether's future listings on other exchanges.
For European traders and businesses, USDT has been a preferred liquidity tool and trading pair on many exchanges. With fewer options, users may need to rely on MiCA-compliant alternatives like Circle's USDC.
