In a significant move to comply with the Markets in Crypto-Assets Regulation (MiCA), Crypto.com has announced it will delist Tether USDt (USDT) along with nine other cryptocurrencies in Europe, effective January 31. This decision marks a pivotal step for the platform as it aligns with evolving regulatory frameworks in the European Union.
The affected tokens include:
- Tether USDt (USDT)
- 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 (XSGD)
According to a spokesperson, users will have until March 31 to convert their assets into MiCA-compliant alternatives. After the initial delisting, users can still withdraw affected tokens until the end of Q1 2025. If users do not convert their holdings by the deadline, these assets will be automatically exchanged for compliant stablecoins or assets that reflect their market value.
This regulatory shake-up aligns with the European Securities and Markets Authority’s (ESMA) recent push for crypto asset service providers (CASPs) to restrict trading of non-compliant stablecoins. As emphasized by Juan Ignacio Ibañez from the MiCA Crypto Alliance, “No trace of USDT should remain, not even in ‘sell-only’ mode” by the end of March.
The decision to delist these tokens follows a trend observed within the EU crypto marketplace, especially after Coinbase’s prior announcement regarding USDT. Such actions underline the strict enforcement of MiCA regulations, which aim to ensure greater stability and compliance in the crypto environment. As the largest stablecoin by market capitalization, valued at around $139 billion according to recent data, USDT’s delisting could have far-reaching implications in the market.
As exchanges like Crypto.com navigate the changing landscape, users are urged to stay informed and act promptly to ensure their holdings remain compliant. The transition signifies not only regulatory compliance but also an evolving understanding of digital assets within traditional financial frameworks.
