European Exchanges Comply with MiCA by Withdrawing USDT

The issuer of the stablecoin USDT has expressed concerns regarding the withdrawal of its crypto from European platforms. This decision, driven by the new MiCA regulation, could create what Tether describes as a “disordered” market and present risks for European consumers.

The issuer of the stablecoin USDT has raised concerns over the recent withdrawal of its cryptocurrency from European platforms. This move, prompted by the new MiCA regulation, could lead to a "disordered" market and pose risks to European consumers, according to Tether.

Crypto.com, a major crypto exchange platform, announced on January 29, 2025, the withdrawal of USDT and nine other tokens in Europe, effective January 31. This decision is aimed at complying with the Markets in Crypto Assets (MiCA) regulation of the European Union.

Coinbase had undertaken a similar measure in December 2024 by delisting USDT and five other cryptocurrencies. The platform stated that it may reintroduce certain stablecoins if they become compliant with MiCA.

Tether has responded by criticizing the "hasty" decisions made on the basis of "vague statements." A spokesperson expressed disappointment over these measures, which they believe lack clarity in their justification.

“It is disappointing to see hasty actions prompted by statements that do not contribute to clarifying the basis for such measures,” the spokesperson told Cointelegraph.

A spokesperson for Tether also highlighted the significant impact these new regulations could have on the European cryptocurrency market, especially considering that MiCA is still in its early stages. The company noted that these restrictions apply not only to USDT but also to other tokens, such as Wrapped Bitcoin and the stablecoin DAI.

The issuer of USDT pointed out that dollar-pegged stablecoins are still underutilized in the European Union, unlike in emerging markets where USDT plays a crucial role. “The USD stablecoin market is nearly negligible in EU,” the spokesperson stated.

Despite these concerns, Tether is reportedly finalizing its European strategy for USDT and claims to be committed to complying with MiCA requirements while developing innovative solutions, such as Hadron, to meet the new regulations.

The situation is expected to unfold rapidly, as the European Securities and Markets Authority (ESMA) has directed crypto platforms to withdraw non-compliant stablecoins by the end of March 2025.

This context also adds to the critiques from U.S. President Donald Trump, who recently lamented the European regulation as "very unfair" to American companies during a virtual speech in Davos.

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