The exchange informed customers via email, advising them to convert USDT, DAI, Wrapped Bitcoin, and other delisted tokens to MiCA-compliant assets by March 31 to avoid automatic conversion.
Crypto.com announced plans to delist Tether’s USDT stablecoin for European customers starting January 31, 2025. This move aligns with the Markets in Crypto-Assets (MiCA) regulations, a new European framework for digital assets.
The decision was communicated via an email to users on January 28, stating that USDT purchases will be suspended by the end of January, according to Crypto(.)news. Users holding USDT will have until March 31 to convert their assets into MiCA-compliant tokens. If users fail to convert manually, the exchange will automatically transfer funds to a compliant stablecoin or an equivalent digital asset.
Crypto.com's decision comes after it obtained a MiCA license in Malta, which allows it to offer crypto-related services across the EU under its regulatory framework.
More Assets to Be Delisted
Crypto.com’s decision does not impact USDT alone. The email also mentioned that Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), and Pax Dollar (USDP) will be removed from the platform for European users. Additionally, three digital asset derivative tokens operated by Crypto.com will also be affected.
According to a Crypto.com spokesperson, the delisting only affects users in the European Union. Customers outside the region will still be able to trade and hold USDT without restrictions.
With this move, Crypto.com follows Coinbase, which removed support for USDT in Europe in late 2024. At the time, Coinbase CEO Brian Armstrong cited MiCA’s strict compliance requirements as the primary reason for dropping the stablecoin.
MiCA regulations require stablecoin issuers to hold reserves in cash at banks and obtain an e-money license from an EU member state. Tether has resisted such requirements, raising concerns about its future in the European market.
Tether’s Regulatory Challenges in Europe
Tether, the largest stablecoin by market cap, has faced increasing regulatory scrutiny in the EU. MiCA introduces stricter rules for stablecoins, ensuring that issuers maintain transparent reserves and financial stability.
Despite these challenges, Tether remains confident in meeting compliance standards. In December, the company announced an investment in European firm StablR to expand its euro-pegged stablecoin offerings. However, Crypto.com’s decision to delist USDT raises questions about whether more exchanges will follow suit.
Tether’s challenges are not limited to Europe. In the U.S., lawmakers are considering two stablecoin bills that would require issuers to hold reserves in U.S. Treasury bonds. If passed, this law would force Tether to liquidate non-U.S. Treasury assets, including gold and secured loans.
Coinbase CEO Brian Armstrong also stated that Coinbase may have to remove USDT in the U.S. if regulators impose stricter stablecoin laws.
Tether reported a $2.5 billion net profit in Q3 2024 and disclosed $105 billion in cash and cash equivalents, with $102.5 billion in U.S. Treasuries. However, stricter global regulations may impact the stablecoin’s dominance.
For European traders and businesses, the stablecoin has been a preferred liquidity and trading pair across many exchanges. With fewer options, users may have to rely on regulated alternatives like Circle’s USDC or MiCA-compliant stablecoins.