Crypto.com has announced plans to delist Tether (USDT) for European users as it moves to comply with the European Union’s upcoming Markets in Crypto-Assets (MiCA) regulations. The exchange stated that the decision aligns with the new regulatory framework, which imposes stricter rules on stablecoins and their issuers. Affected users have been advised to withdraw or convert their USDT holdings before the delisting takes effect.
The MiCA regulations, set to be enforced in 2024, introduce clearer guidelines for stablecoins operating within the EU. These rules require issuers to meet strict compliance standards, particularly regarding reserve backing and transparency. While USDT remains the largest stablecoin by market capitalization, its issuer, Tether, has faced ongoing scrutiny over its reserves and regulatory status, leading to increased restrictions in some jurisdictions.
Crypto.com’s move follows similar actions by other exchanges preparing for MiCA’s impact on the European crypto market. The delisting could push European users toward alternative stablecoins that meet regulatory requirements, such as Circle’s USDC or Europe-regulated euro-backed stablecoins. Industry experts see this as a pivotal moment for stablecoin adoption in the EU, as exchanges and issuers navigate the evolving legal landscape.
Despite the delisting, Crypto.com reassured users that its overall services in Europe will remain unaffected, and it will continue to support compliant stablecoins. As regulatory clarity improves, more exchanges may adjust their offerings, reshaping the stablecoin ecosystem in the region. The response from both crypto firms and regulators will be key in determining the future of digital assets under MiCA’s framework.
