Crypto.com has announced it will delist Tether’s USDT and nine other tokens in Europe by Jan. 31, 2025, to comply with the European Union's Markets in Crypto-Assets Regulation (MiCA). The tokens being delisted include Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD (PYUSD), Crypto.com Staked ETH (CDCETH), Crypto.com Staked SOL (CDCSOL), Liquid CRO (LCRO), and XSGD. A spokesperson for Crypto.com confirmed that purchases of these tokens will be suspended on Jan. 31, and deposits will also be disabled shortly after. However, withdrawals will remain available until the end of Q1 2025, and full delisting is expected to occur by March 31, 2025.
Users who hold these tokens will have until March 31 to convert them into MiCA-compliant assets. If they do not convert by this date, their holdings will be automatically swapped for a compliant stablecoin or an asset of equivalent market value. The delisting follows the EU’s full enforcement of MiCA regulations at the end of 2024. The European Securities and Markets Authority (ESMA) has been urging crypto asset service providers (CASPs) to comply by Jan. 31, restricting non-MiCA-compliant stablecoins. USDT, the largest stablecoin by market capitalization, is one of the tokens affected by this regulation.
MiCA requires that stablecoins operating within the European Economic Area (EEA) must have an e-money license from at least one EU member state. USDT, which has a market cap of $139 billion, does not have such a license, and Tether has not received authorization under MiCA. This has led to increased scrutiny of USDT in the region. The delisting of USDT from exchanges like Crypto.com follows similar moves by other platforms, including Coinbase, which delisted USDT in December 2024 due to its non-compliance. Following Coinbase's move, users were given the option to convert their USDT into MiCA-compliant options like USD Coin (USDC).
Alongside USDT, Crypto.com will also delist several other tokens, including Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), and several other stablecoins and assets. This is part of a broader effort by Crypto.com to secure MiCA compliance, which also includes obtaining a license in Malta. MiCA's implementation has triggered a race among exchanges in the EU to ensure they meet the regulatory standards. Other exchanges, including Gemini, have also established operations in Malta to comply with the regulation.
As MiCA regulations continue to reshape the crypto landscape in Europe, only stablecoins that meet MiCA standards, like USDC, will likely thrive. USDT’s challenges in complying with the new regulations could make it difficult for the token to maintain its position in the European market.