Crypto.com has announced plans to delist the Tether (USDT) stablecoin for European users starting January 31, 2025. This move aligns with the new MiCA regulations.
Reasons for Delisting
An email to users stated that USDT purchases will be suspended by the end of January. Users must convert their assets to MiCA-compliant tokens by March 31. The decision follows Crypto.com obtaining a MiCA license in Malta, allowing it to offer crypto services across the EU.
Prospects for Tether
Tether faces increased regulatory scrutiny in the EU. MiCA requires stablecoin issuers to hold reserves in cash and obtain an e-money license. Despite these challenges, Tether is investing in a European firm to expand its offerings.
Impact on Users
Crypto.com's decision follows Coinbase's move to drop USDT in Europe. In the U.S., legislation is being considered which could impact Tether by requiring issuers to hold reserves in U.S. Treasury bonds.
The delisting of USDT might force European traders to rely on alternatives such as Circle's USDC or other MiCA-compliant stablecoins.
