Crypto.com will delist Tether USDT and nine other tokens in Europe by January 31, 2025, in accordance with MiCA regulations. Users can convert their holdings until March 31, 2025, to compliant assets. This move reflects growing scrutiny of non-compliant tokens like USDT in the European market, affecting its stability and future.
Crypto.com is bracing for changes in the European crypto landscape by announcing the delisting of Tether’s USDT and nine other cryptocurrencies by January 31, 2025. This step aligns with the European Union’s Markets in Crypto-Assets Regulation (MiCA), aiming to enforce stricter compliance. The list of affected tokens encompasses Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD (PYUSD), and others, marking a significant shift for users and the market.
Following this announcement, Crypto.com will suspend purchases of these tokens on January 31, while deposits will be disabled shortly thereafter. Notably, users will still be able to withdraw their holdings until the end of Q1 2025, with full delisting expected by March 31, 2025. To avoid complications, users will need to convert their balances into regulatory-compliant assets by this date.
This delisting is a proactive response to the enforcement of MiCA, which requires stablecoins operating in the European Economic Area to obtain an e-money license from at least one EU member state. Since USDT lacks such a license and Tether has not gained authorization under MiCA, it faces increased scrutiny. Other exchanges, such as Coinbase, have already taken similar measures, further emphasizing the urgency for compliance in the market.
In addition to USDT, various other tokens like Wrapped Bitcoin and stablecoins are being delisted as Crypto.com takes steps toward MiCA compliance, which includes securing a license in Malta. This regulatory wave has ignited a competition among exchanges in the EU to adhere to the new standards while ensuring the future viability of their operations.
As MiCA regulations shape Europe’s crypto landscape, only stablecoins conforming to these standards, such as USD Coin (USDC), will likely flourish. With USDT struggling to meet these requirements, its dominance in the European market may soon be challenged, potentially altering the dynamics of stablecoin usage across the region.
In summary, Crypto.com’s decision to delist Tether’s USDT and nine other tokens by January 31, 2025, underscores the urgent need for compliance with the EU’s MiCA regulations. As users and exchanges navigate this new landscape, only those stablecoins that align with regulatory standards are set to survive and thrive. The unfolding situation presents both challenges and opportunities within the ever-evolving crypto market.
Original Source: coinmarketcap.com
