Axelar (axl) 
Crypto.com to Delist Tether’s Stablecoin in Europe Amid MiCA Compliance
Compliance with Markets in Crypto-Assets Regulations
Crypto.com has announced plans to discontinue trading support for Tether’s US dollar-pegged stablecoin (USDT) in Europe by January 31. The move comes as a result of compliance with the Markets in Crypto-Assets (MiCA) Regulations. This decision will affect European customers, making Crypto.com the second major digital asset exchange to delist USDT in the region.
Affected Assets and Timeline
In addition to USDT, other assets will be delisted, including Dai, Wrapped Bitcoin, Pax Gold, Pax Dollar, and three digital asset derivative tokens operated by Crypto.com. A spokesperson stated that users holding these tokens will have until the end of Q1 (March 31) to convert them to MiCA-compliant assets. Failure to do so will result in automatic conversion to a compliant stablecoin or asset of corresponding market value.
“In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on the 31st January, 2025. Users holding these tokens will have until the end of Q1, 31st of March, to convert them to MiCA-compliant assets, otherwise they will be automatically converted to a compliant stablecoin or asset of corresponding market value.”
Implications for Tether and the European Market
Crypto.com’s decision follows Coinbase’s delisting of USDT in Europe late last year, citing noncompliance with MiCA’s framework. Tether’s future in the European market remains uncertain due to stricter standards for stablecoins and crypto services introduced by MiCA.
Despite the challenges, Tether’s issuer has expressed confidence in meeting MiCA requirements. However, the fate of USDT within the EU remains unclear, with potential regulatory pressure on platforms like Coinbase to delist USDT in other regions, including the US.
Key Considerations for Investors
Investors should note the following:
* USDT’s primary adoption is concentrated in emerging markets outside the US and Europe.
* Platforms may face regulatory pressure to delist USDT in other regions if compliance concerns persist.
* Investors should stay informed about regulatory developments and their impact on the crypto market.
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