Crypto.com to Remove USDT and Other Tokens in Europe by 2025
Crypto.com has revealed plans to remove Tether’s USDT along with nine additional tokens from its platform in Europe by January 31, 2025. This decision aligns with the European Union’s new Markets in Crypto-Assets Regulation (MiCA). The tokens set for delisting 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 representative from Crypto.com confirmed that purchases of these tokens will cease on January 31, followed by the disabling of deposits shortly thereafter. However, users will still be able to withdraw their holdings until the conclusion of the first quarter of 2025, with a complete removal anticipated by March 31, 2025.
Conversion Deadline for Token Holders
Users possessing these tokens will have until March 31 to exchange them for assets that comply with MiCA regulations. If they fail to make the conversion by this date, their tokens will be automatically exchanged for a compliant stablecoin or another asset of equivalent market value. This action is a direct response to the EU’s full enforcement of MiCA regulations set for the end of 2024. The European Securities and Markets Authority (ESMA) has been urging crypto asset service providers (CASPs) to adhere to these regulations by January 31, which includes limiting the use of non-MiCA-compliant stablecoins. Notably, USDT, which leads the stablecoin market by capitalization, is included in this regulatory update.
Regulatory Challenges for USDT
Under MiCA, stablecoins operating within the European Economic Area (EEA) are required to obtain an e-money license from at least one EU member state. USDT, with a market capitalization of $139 billion, does not possess such a license, and Tether has not secured the necessary authorization under MiCA. Consequently, the token is facing heightened scrutiny in Europe. The decision to delist USDT mirrors similar actions taken by other exchanges, such as Coinbase, which removed USDT from its platform in December 2024 due to non-compliance. Following Coinbase’s decision, users were offered options to convert their USDT holdings into MiCA-compliant alternatives like USD Coin (USDC).
Broader Compliance Efforts by Crypto.com
In addition to USDT, Crypto.com will also discontinue several other tokens, including Wrapped Bitcoin (WBTC), Dai (DAI), and Pax Dollar (PAX), among others. This move is part of Crypto.com’s broader strategy to ensure compliance with MiCA, which includes seeking a license in Malta. The implementation of MiCA has prompted a competitive atmosphere among exchanges across the EU, all aiming to meet the evolving regulatory requirements. Other platforms, including Gemini, have similarly established operations in Malta to align with these regulations.
Future of Stablecoins in Europe
As MiCA regulations continue to influence the cryptocurrency landscape in Europe, only those stablecoins meeting the new standards, such as USDC, are likely to succeed. The difficulties faced by USDT in adhering to these regulations may hinder its ability to maintain a strong presence in the European market.
