Crypto.com Drops USDT: EU's MiCA Forces Stablecoin Exit

Crypto.com, a major digital asset exchange, has announced its decision to delist Tether's U.S. dollar-pegged stablecoin (USDT) for European customers by January 31, 2025. This move is in compliance with the Markets in Crypto-Assets (MiCA) regulations. The exchange secured a MiCA license in Malta, enabling it to operate crypto-related services across the EU under the regulatory framework.

The delisting of USDT, along with other assets such as Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold, Pax Dollar, and three digital asset derivative tokens operated by Crypto.com, is part of the exchange's effort to comply with MiCA's requirements. European users are advised to convert their outstanding assets to compliant tokens by the end of the first quarter, March 31, 2025, to avoid automatic conversion to a compliant stablecoin or asset of corresponding market value.

Crypto.com's decision follows Coinbase's move to end support for USDT in Europe late last year, also citing noncompliance with MiCA's framework. The future of Tether's $138 billion USDT stablecoin within the EU remains uncertain, as platforms may face further regulatory pressure to delist USDT in other regions if compliance concerns persist. However, USDT's primary adoption is concentrated in emerging markets outside the U.S. and Europe.