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<a href="https://crypto.com/" rel="noopener noreferrer nofollow">Crypto.com</a> announced plans to&nbsp;delist <a href="https://tether.to/en/" rel="noopener noreferrer nofollow">Tether’s USDT </a>stablecoin for European customers starting&nbsp;January 31, 2025. This move aligns with the&nbsp;Markets in Crypto-Assets (MiCA) regulations, a new European framework for digital assets.The decision was communicated via an email to users on&nbsp;January 28, stating that USDT purchases will be&nbsp;suspended by the end of January, according to Crypto(.)news. Users holding USDT will have until&nbsp;March 31 to convert their assets into MiCA-compliant tokens. If users fail to convert manually, the exchange will&nbsp;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.<h2 id="span-span-more-assets-to-be-delisted-span-span">More Assets to Be Delisted</h2>Crypto.com’s decision does not impact USDT alone. The email also mentioned that&nbsp;Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), and Pax Dollar (USDP) will be removed from the platform for European users. Additionally,&nbsp;three digital asset derivative tokens operated by Crypto.com will also be affected.According to a&nbsp;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,&nbsp;Crypto.com follows Coinbase, which removed support for&nbsp;USDT in Europe in late 2024. At the time,&nbsp;Coinbase CEO Brian Armstrong cited MiCA’s strict compliance requirements as the primary reason for dropping the stablecoin.&nbsp;MiCA regulations require&nbsp;stablecoin issuers to hold reserves in cash at banks and obtain an&nbsp;e-money license from an EU member state. Tether has resisted such requirements, raising concerns about its future in the European market.<h2 id="span-span-tether-s-regulatory-challenges-in-europe-span-span">Tether’s Regulatory Challenges in Europe</h2>Tether, the largest stablecoin by market cap, has faced increasing regulatory scrutiny in the EU. MiCA introduces&nbsp;stricter rules for stablecoins, ensuring that issuers maintain transparent reserves and financial stability.Despite these challenges,&nbsp;Tether remains confident in meeting compliance standards. In December, the company announced an&nbsp;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&nbsp;two stablecoin bills that would require issuers to&nbsp;hold reserves in U.S. Treasury bonds. If passed, this law would force&nbsp;Tether to liquidate non-U.S. Treasury assets, including gold and secured loans.Coinbase CEO Brian Armstrong also <a href="https://www.wsj.com/livecoverage/stock-market-today-dow-sp500-nasdaq-live-01-21-2025/card/coinbase-would-delist-stablecoin-tether-if-required-by-law-ceo-says-YQjucrr0egRRssjPTCYh" rel="noopener noreferrer nofollow">stated</a> that&nbsp;Coinbase may have to remove USDT in the U.S. if regulators impose stricter stablecoin laws.Tether reported a&nbsp;<a href="https://tether.io/news/tether-hits-7-7-billion-2024-nine-month-profits-102-5-billion-in-u-s-treasury-holdings-almost-120-billion-usd%e2%82%ae-circulation-and-an-over-6-billion-reserve-buffer-in-q3-2024-attestation/" rel="noopener noreferrer nofollow">$2.5 billion</a> net profit in Q3 2024 and disclosed&nbsp;$105 billion in cash and cash equivalents, with&nbsp;$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&nbsp;liquidity and trading pair across many exchanges. With fewer options, users may have to rely on&nbsp;regulated alternatives like Circle’s USDC or MiCA-compliant stablecoins.

Crypto.com to Delist USDT for EU Users by January 31

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