Crypto.com Drops USDT in Europe! MiCA Regulations Reshape the Market

End of an Era? Crypto.com to Delist USDT and 9 Tokens in Europe
MiCA Crackdown: USDT Faces Delisting from Crypto.com by 2025
Crypto.com Complies with MiCA—USDT & 9 Other Tokens to Be Removed
Tether in Trouble? Crypto.com to Delist USDT in Europe by March 2025

Crypto.com has announced that it will delist Tether’s USDT and nine other tokens in Europe by January 31, 2025, in order to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA). The tokens set to be removed 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)
XSGD
According to a Crypto.com spokesperson, purchases of these tokens will be suspended on January 31, 2025, and deposits will be disabled soon after. However, users will be able to withdraw their holdings until the end of Q1 2025, and the full delisting will be completed by March 31, 2025.

What Happens to Users Holding These Tokens?
Users will have until March 31, 2025, to convert their holdings into MiCA-compliant assets. If they fail to do so, their assets will be automatically swapped for a regulatory-approved stablecoin or an equivalent asset.

Why is This Happening?
This move follows the EU’s full enforcement of MiCA regulations at the end of 2024. The European Securities and Markets Authority (ESMA) has been pushing crypto asset service providers (CASPs) to comply by January 31, 2025, restricting stablecoins that do not meet MiCA compliance standards.

MiCA mandates that stablecoins operating in the European Economic Area (EEA) must have an e-money license from at least one EU member state. Tether’s USDT, which has a market cap of $139 billion, lacks such a license and has not received regulatory approval under MiCA. As a result, it faces increased scrutiny and delisting in Europe.

Crypto Exchanges Following Suit
The delisting of USDT by Crypto.com follows similar actions taken by Coinbase, which removed USDT in December 2024 due to MiCA non-compliance. Coinbase offered users the option to convert their USDT holdings into MiCA-compliant alternatives like USD Coin (USDC).

Crypto.com’s removal of these tokens is part of a larger effort to ensure full MiCA compliance. The exchange has also applied for a license in Malta to continue operations within the EU under MiCA guidelines. Other exchanges, including Gemini, have also moved to Malta to remain compliant with the new regulations.

What’s Next for Stablecoins in Europe?
With MiCA reshaping the crypto industry in Europe, only stablecoins that meet the new regulations—like USDC—are likely to survive. USDT’s ongoing compliance challenges could weaken its dominance in the European market and push users toward regulatory-compliant alternatives.

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