Crypto.com has announced plans to delist Tether's USDT stablecoin for European users starting January 31, 2025, in compliance with the new MiCA regulatory framework.
Delisting USDT and Other Assets
The decision was communicated to users via an email dated January 28, indicating that USDT purchases would be suspended by the end of January. Users will have until March 31 to convert their assets to MiCA-compliant tokens. If not converted manually, the platform will automatically transfer funds to compliant stablecoins or equivalent digital assets. Additionally, several other assets, including Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), and Pax Dollar (USDP), will be delisted.
Tether’s Regulatory Challenges in Europe
As the largest stablecoin by market cap, Tether faces increased regulatory scrutiny in the EU. MiCA introduces stringent rules ensuring that stablecoin issuers maintain transparent reserves and financial stability. Despite these challenges, Tether remains confident in meeting compliance standards. However, Crypto.com’s delisting decision raises questions about whether more exchanges will adopt similar measures.
Future of Stablecoins in the European Market
European traders and businesses have favored stablecoins as liquidity and trading pairs across many exchanges. With fewer options available, users may rely on regulated alternatives like Circle’s USDC or MiCA-compliant stablecoins. The stablecoin market continues to evolve amid regulatory changes in both Europe and the U.S., where new laws regarding stablecoin reserves are under consideration.
Crypto.com's move to delist USDT is a significant step in adhering to the new MiCA regulations in Europe. These changes are set to impact the stablecoin market by shifting preferences and approaches among market participants.
