- Crypto.com delists USDT and other tokens in Europe
- MiCA regulation requires compliance with new rules
- Users have until March to convert assets
Crypto.com has announced that it will remove USDT and nine other tokens from its platform for users in the European Union starting January 31, 2025. The decision is part of the exchange’s efforts to comply with the requirements of the Markets in Crypto Assets Regulation (MiCA), which establishes a new set of rules for stablecoins and other digital assets in the block economic. After this date, deposits in these tokens will be disabled, while withdrawals will remain available until March 31. Users who do not convert their holdings by the end of QXNUMX will have their assets automatically converted to a stablecoin or other MiCA-compatible asset of equivalent value.
Among the tokens that will be removed are Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD (PYUSD), as well as Crypto.com's own staking versions, such as Crypto.com Staked ETH (CDCETH) and Crypto.com Staked SOL (CDCSOL). Liquid CRO (LCRO) and XSGD will also be affected. The impact of the decision reinforces the regulatory movement that has led several exchanges to reevaluate their asset offering in the European market. MiCA imposes a series requirements for stablecoins, including strict reserve requirements and increased transparency to protect investors and ensure financial stability in the sector.
The removal of USDT from the European market has been one of the central themes of exchanges’ adaptation to the new regulations, since the stablecoin, which has more than US$139 billion in circulation, does not meet the criteria required by MiCA. Coinbase had already made a similar decision previously, removing support for USDT and offering users regulated alternatives, such as USD Coin (USDC). The trend indicates that other platforms may follow suit as the regulatory compliance deadline approaches.
The new European regulatory environment has led several companies to seek licensing to continue operating within the rules. Crypto.com recently obtained a license under MiCA, allowing its services to be offered throughout the European Union within the established legal framework. With this authorization, the exchange reinforces its commitment to operating in line with the regulatory guidelines of the region. The European Securities and Markets Authority (ESMA) had already warned crypto companies to ensure that their operations were compliant with MiCA by the end of January.
Crypto.com’s decision marks another significant step in the industry’s adaptation to the new European regulatory landscape, and as more platforms implement similar changes, investors will need to adapt to a new reality in the crypto market.