Crypto.com announces plans to delist Tether's USDT for European users starting January 31, 2025, aligning with the new MiCA regulations for digital assets.
Reasons for Delisting
Crypto.com's decision to delist Tether USDT is tied to acquiring a MiCA license in Malta, allowing the platform to offer crypto services throughout the EU under the new regulatory framework. MiCA requires stablecoin issuers to maintain reserves in cash at banks and obtain an e-money license from EU member states, which has posed a challenge for Tether.
Impact on European Users
Crypto.com informed users 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. If users fail to do so manually, the exchange will automatically transfer funds to a compliant stablecoin or equivalent digital asset.
Tether's Regulatory Challenges in Europe
Tether, the largest stablecoin by market cap, faces increased regulatory scrutiny in the EU. MiCA introduces stricter rules for stablecoins, ensuring transparent reserves and financial stability for issuers. Despite these challenges, Tether remains confident in meeting compliance standards. The company recently announced an investment in European firm StablR to expand euro-pegged stablecoin offerings. However, Crypto.com's decision to delist USDT raises questions about potential similar actions by other exchanges.
As regulatory pressure on Tether and other stablecoins increases in Europe and globally, users may need to seek alternatives that meet new standards. This may strengthen the position of other stablecoins such as Circle's USDC or MiCA-compliant assets.
