Crypto.com has announced it will delist Tether (USDT) and nine other cryptocurrencies from its European platform on January 31, 2025. This decision follows the implementation of the EU's Markets in Crypto-Assets (MiCA) regulations.
Cryptocurrency exchange Crypto.com has announced that it will be delisting Tether (USDT) and nine other tokens from its European platform on January 31, 2025. This decision comes in response to the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulations.
Following the implementation of the Markets in Crypto-Assets (MiCA) regulations by the European Union, cryptocurrency exchange Crypto.com has announced the upcoming delisting of several tokens from its European platform. Commencing January 31, 2025, Crypto.com will halt purchases of the affected tokens, including Tether (USDT), 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 (XSGD).
Throughout the first quarter, users will still be able to withdraw the delisted tokens. Afterward, Crypto.com users in Europe will have until March 31, 2025, to convert their holdings into MiCA-compliant assets. If users fail to take action, their holdings will be automatically converted into a stablecoin or an asset of equivalent value.
The European Securities and Markets Authority (ESMA) recently advised European crypto-asset service providers (CASP) to restrict non-compliant stablecoins by January 31. Tether’s delisting is a direct result of these new regulations, which require stablecoins to maintain more than 60% of their reserves in recognized banks. The MiCA framework also mandates that stablecoin issuers obtain an e-money license to operate in the European region.
The MiCA regulations impose strict rules on stablecoin issuers, aiming to enhance market stability and protect users. Tether’s failure to meet these requirements could prompt other exchanges to follow Crypto.com’s lead.
Tether’s struggles to meet the new regulatory standards have raised concerns about its future in Europe, especially considering its removal from major platforms like Crypto.com and Coinbase. The exchange’s decision highlights the challenges faced by Tether in meeting the changing regulatory landscape.
Moreover, the lack of transparency regarding Tether’s reserves has further complicated its position in the market. Competitors like USD Coin (USDC) have gained favor due to their transparent operations, posing a threat to Tether’s dominance.
As exchanges and stablecoin issuers navigate these changes, the market may experience shifts in liquidity and trading efficiency. The long-term effects of these regulations will likely reshape the crypto industry across Europe.
