Crypto.com announced plans to delist the stablecoin Tether USDT for European customers starting January 31, 2025, in alignment with the new MiCA regulations.
Crypto.com Delisting Plans
Crypto.com's decision reflects the new Markets in Crypto-Assets (MiCA) regulations in Europe. Users were notified via email that USDT purchases would be suspended by the end of January. Holders of USDT should convert their assets into MiCA-compliant tokens by March 31. Failing to do so will result in automatic transfer of funds to a compliant stablecoin or equivalent digital asset.
Tether's Regulatory Challenges in Europe
Tether, the largest stablecoin by market cap, faces increasing regulatory scrutiny in the EU. MiCA introduces stricter rules for stablecoins, requiring issuers to maintain reserves at banks and obtain an e-money license from an EU member state. Tether has resisted such requirements, raising questions about its future in the European market.
Implications for Market and Exchanges
For European traders and businesses, the stablecoin has been a preferred liquidity and trading pair across many exchanges. With fewer options, users may have to rely on regulated alternatives like Circle’s USDC or MiCA-compliant stablecoins.
Crypto.com's decision to delist USDT in Europe raises questions about the future of stablecoins in the region and may signal other exchanges to follow suit.
