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- Crypto.com will remove USDT and nine other tokens from its European platform by January 31 due to MiCA regulation that will affect users’ transactions.
- MiCA enforcement is enforcing platforms like Coinbase and Crypto.com to delist stablecoins and remap the European digital asset market.
As per the recently released statement, Crypto.com has confirmed that it will be delisting Tether (USDT) and nine other digital assets from its European platform to adhere to the MiCA regulation. The change will take effect from January 31st in response to the rules that do not allow stablecoins that are not in compliance with MiCA within the EU.
Trading and Deposit Restrictions.
From January 31st, Crypto.com will no longer allow the purchase of USDT and nine other tokens. Nevertheless, clients will withdraw these assets until the first quarter of 2025. A complete delisting is expected to be completed by March 31.
According to a company spokesperson, all tokens should be converted into MiCA-compliant tokens by the set time. In any other case, the platform will swap these tokens for a stablecoin or assets that comply and have equivalent values.
However, the European Securities and Markets Authority (ESMA) has highlighted the need for CASPs in the EU to refrain from providing services related to non-MiCA-compliant stablecoins. This regulation is intended to provide better clarity into the digital asset market and improve the protection of consumers.
Tokens Affected and Regulatory Framework
This has an impact on ten cryptocurrencies. Besides, Tether (USDT), other affected tokens include Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD (PYUSD), Crypto.com Staked Ethereum (CDCETH), Crypto.com Staked Solana (CDCSOL), Liquid CRO (LCRO) and XSGD.
This comes after the MiCA laws that came into force on December 30, 2024. These new standards entail that the stablecoins being used across the EU member states are in a position to meet certain specific regulatory requirements. Those exchanges that do not follow these standards are exposed to penalties and limited operations.
Broader Implications and Future Developments
This decision is in line with other actions taken by other exchanges. In October 2024, Coinbase announced that it would be delisting USDT from its EU platform due to non-compliance with MiCA. This process was completed by mid-December 2024, and users were swapped USDT with other MiCA-compliant assets, including Circle’s USDC.
After the adoption of MiCA, several CASPs in Europe have secured regulatory licenses. Some, like Crypto.com, are still in the process of seeking approval in other jurisdictions, including Malta. These updated rules will redefine the European cryptocurrency market as more exchanges will meet the requirements set by MiCA.
Juan Ignacio Ibañez from the Technical Committee of the MiCA Crypto Alliance has underlined the importance of compliance. He said that all tokens that don’t comply with the new requirements should be delisted from the CASP platforms no later than March 31, even if they are in “sell-only” mode.
The delisting of USDT and other impacted assets is a regulatory change in the European digital asset industry. We could also expect more tokens to be delisted as exchanges continue to meet the requirements under MiCA.
