Crypto.com has announced plans to delist Tether's USDT stablecoin for European customers as part of the new MiCA regulations. This decision will take effect from January 31, 2025.
USDT Delisting and Other Assets
Users received notifications on January 28 from Crypto.com regarding the upcoming cessation of USDT support. Until March 31, users can convert their assets into MiCA-compliant tokens. The delisting also affects the tokens Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), and Pax Dollar (USDP) for EU users.
Tether's Regulatory Challenges in Europe
Tether, the largest stablecoin by market capitalization, faces increased regulatory scrutiny in the EU. MiCA imposes stricter rules requiring issuers to hold reserves in cash and obtain an e-money license. In December, Tether announced investments in European firm StablR to expand euro-pegged stablecoin offerings.
Global Implications for Tether
In the US, lawmakers are considering bills that will require stablecoin issuers to have reserves in US Treasury bonds. Such laws, if passed, would force Tether to liquidate non-Treasury assets, including gold and secured loans.
Crypto.com's plans and the tighter MiCA requirements highlight the growing challenges for Tether in Europe. Regulated alternatives like USDC may become more appealing for European traders and businesses.
