After securing a Markets in Crypto-Assets license,Crypto.com will become the second major digital asset exchange to discontinue trading support for Tether’s stablecoin in Europe.
Crypto.com plans to delist Tether’s U.S. dollar-pegged stablecoin (USDT) by Jan. 31 for European customers due to compliance with Markets in Crypto-Assets Regulations, per an email issued to users seen on Jan. 28.
The email cited also included delisting notice for a bevy of other assets, including Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold, Pax Dollar, and three digital asset derivative tokens operated by Crypto.com. A spokesperson said in a statement obtained by crypto.news the decision only affected EU users and advised customers to convert outstanding assets to compliant tokens by March.
In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on the 31st January, 2025. Users holding these tokens will have until the end of Q1, 31st of March, to convert them to MiCA-compliant assets, otherwise they will be automatically converted to a compliant stablecoin or asset of corresponding market value.
Crypto.com representative
Once effective, Crypto.com will follow Coinbase as the second major crypto exchange to delist USDT in Europe. Coinbase ended support for the stablecoin late last year, citing noncompliance with MiCA’s framework.
Crypto.com’s decision comes shortly after the company secured a MiCA license in Malta, allowing it to operate crypto-related services across the EU under the regulatory framework.
Tether’s future in the European market has faced increased uncertainty since MiCA introduced stricter standards for stablecoins and crypto services across the continent.
Despite the challenges, USDT’s issuer has expressed confidence in its ability to meet MiCA requirements. In December, Tether announced an investment in European firm StablR to bolster its euro-pegged stablecoin offering.
However, the fate of Tether’s $138 billion USDT stablecoin within the EU remains unclear. Platforms like Coinbase could face further regulatory pressure to delist USDT in other regions, including the U.S., if compliance concerns persist. It’s worth noting that USDT’s primary adoption is concentrated in emerging markets outside the U.S. and Europe.
