Crypto.com to Delist Tether (USDT) and Nine Other Tokens in Response to MiCA Regulations

The exchange confirmed that purchases of these tokens will be suspended starting January 31. A spokesperson for Crypto.com stated that while deposits will be disabled, users can withdraw affected assets until the end of the first quarter of 2025.

Cryptocurrency exchange Crypto.com is preparing to delist Tether’s (USDT) token and nine other cryptocurrencies in response to the European Union’s Markets in Crypto-Assets (MiCA) regulation.

According to an email sent by Crypto.com and shared on social media, the exchange will halt purchases of the affected tokens starting January 31.

A Crypto.com spokesperson confirmed the move to Axios, adding that while deposits will be disabled, users will be able to withdraw the affected assets until the end of Q1 2025, at which point the tokens will be fully delisted.

If customers fail to convert their holdings by March 31, their assets will be automatically converted into a MiCA-compliant stablecoin or a corresponding asset of equal market value.

The email from Crypto.com reportedly lists Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD (PYUSD), Crypto.com Staked ETH (CDCETH), Crypto.com Staked SOL (CDCSOL), Liquid CRO (LCRO), and XSGD as the tokens that will be delisted.

The move aligns with recent guidance from the European Securities and Markets Authority (ESMA), which urged crypto service providers in the region to restrict non-compliant stablecoins by January 31.

The status of USDT in Europe has been a subject of discussion since Coinbase announced its own decision to delist the token in October 2024.

When MiCA regulations fully came into effect on December 30, several exchanges continued to trade USDT, although Coinbase went ahead and removed the token in mid-December, offering customers conversions into MiCA-approved options like Circle’s USD Coin (USDC).

Following MiCA’s enforcement, several European crypto providers secured MiCA licenses, while others, including Crypto.com, are in the process of obtaining one in Malta.

Industry experts have interpreted ESMA’s directive as a push for the complete removal of non-compliant assets, with Juan Ignacio Ibañez of the MiCA Crypto Alliance stating that by March 31, “there should be no trace of USDT, not even in ‘sell-only’ mode.”

Currently, USDT is the world’s largest stablecoin with a market capitalization of $139 billion. Its primary competitor, USDC, was granted MiCA compliance in July 2024 and has a market cap of $52 billion.