Crypto.com has announced plans to remove Tether’s USDT stablecoin for its European customers starting January 31, 2025. This decision aligns with the new European Markets in Crypto-Assets (MiCA) regulations.
Delisting Plans and Reasons
Customers were informed of the impending USDT removal via email on January 28. According to Crypto.news, USDT purchases will be suspended by the end of January. Holders will have until March 31 to convert their assets to MiCA-compliant tokens. If users do not manually convert, the exchange will automatically transfer funds to a compliant stablecoin or equivalent digital asset. This decision follows Crypto.com obtaining a MiCA license in Malta, allowing it to offer crypto services across the EU under the regulatory framework.
More Assets to Be Delisted
Crypto.com's decision affects more than USDT. The email also mentioned Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), and Pax Dollar (USDP) being removed for European users. Additionally, three digital asset derivative tokens by Crypto.com will be affected. According to a company spokesperson, the delisting only impacts users in the EU; customers outside the region can continue trading and holding USDT without restrictions. This move follows Coinbase, which stopped supporting USDT in Europe in late 2024, citing MiCA’s stringent compliance requirements.
Tether’s Regulatory Challenges in Europe
Tether, the largest stablecoin by market capitalization, faces increasing regulatory scrutiny across the EU. MiCA requires stablecoin issuers to hold reserves in cash at banks and obtain an e-money license from an EU member state. In December, Tether announced investments in the European firm StablR to expand its euro-pegged stablecoin offerings. Tether also faces potential legislative changes in the U.S., which could impact its global market position.
Crypto.com's decision to delist USDT underscores the importance of compliance with new MiCA regulations and signals potential shifts in the stablecoin market in Europe. Users may have to shift to MiCA-compliant alternatives like Circle’s USDC.
