Cryptocurrency exchange Crypto.com is set to delist Tether’s USDT and nine other tokens in Europe on Jan. 31. The action follows the decision to comply with the implementation of the Markets in Crypto-Assets Regulation (MiCA) framework. The platform has also given users until March 31 to convert their assets.
The cryptocurrency exchange platform is among the first platforms to announce the delisting after a recent statement from the European Securities and Markets Authority (ESMA). This pushed European crypto asset service providers (CASP) to restrict non-MiCA-compliant stablecoins by Jan. 31. ESMA is the EU’s financial markets regulator and one of the key supervisors of MiCA compliance.
A Crypto.com spokesperson confirmed to Cointelegraph on Wednesday that the platform will suspend purchases of Tether USDT by the end of January.
Following the disabling of deposits, the exchange will continue to support withdrawals for the affected tokens until the end of the first quarter of 2025, with full delisting scheduled for March 31.
“Users holding these tokens will have until the end of Q1, 31st of March, to convert them to MiCA-compliant assets, otherwise they will be automatically converted to a compliant stablecoin or asset of corresponding market value,” the spokesperson said.
Last week, ESMA’s statement suggested that Tether’s USDT, the largest stablecoin by market capitalization, is subject to restrictions in the EU.
“By ESMA’s definition, USDT is a non-compliant asset. Tether does not have a license. There was no debate around this. No trace of USDT should remain, not even in ‘sell-only’ mode by March 31,” Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto AllianceI said, concluding that Tether is not an authorized issuer under MiCA.
On its part, the stablecoin noted that it is aware of the evolving regulatory landscape under MiCA and its potential implications for the stablecoin market. It added that efforts are being made to arrest the situation.
“Many exchanges are actively engaging with local NCAs to address concerns and mitigate any potential disruption to consumers,” a Tether USDT spokesperson said last week.
On June 30, MiCA mandated that all stablecoins available in the European Economic Area (EEA) must hold an e-money license in at least one EU member state. The move aligns with the regulator’s plans to tighten control over the digital asset sector.
This regulation directly affects leading tokens like Tether’s USDT which has been forced off the Coinbase platform after it failed to comply with the regulations.
Other crypto delisting
Alongside Tether’s USDT, Crypto.com will also delist 9 other crypto such as Wrapped Bitcoin (WBTC), Dai, Pax dollar (PAX), Pax gold, PayPal USD, Crypto.com Staked ETH (CDCETH), Crypto.com Staked SOL (CDCSOL), Liquid CRO (LCRO) and XSGD (XSGD).
Majorly, USDT delisting in the European Union has been a focal debate in the cryptocurrency community since Coinbase announced USDT delisting as a noncompliant stablecoin under MiCA in October 2024.
“Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” Coinbase said.
After delisting the stablecoin in mid-December 2024, Coinbase Europe offered its clients conversion of USDT into MiCA-compliant options, including Circle’s USD Coin. Circle was one of the first stablecoin issuers to comply with MiCA’s regulatory requirements.
As MiCA regulations entered force on Dec. 30, many crypto assets service providers (CASPs) in the EU continued trading USDT after Coinbase’s delisting. The regulator had earlier urged (CASPs) to take urgent measures regarding non-MiCA-compliant stablecoins.
Since full MiCA enforcement, multiple CASPs in Europe have obtained MiCA licenses, while others, including Crypto.com, have been actively working to secure one in Malta.
USDT is the largest stablecoin on the market, with a market capitalization of $139 billion according to CoinGecko. Its largest competitor, USDC, was greenlighted as a MiCA-compliant stablecoin in July 2024 with its market cap currently amounting to $52 billion.
Also Read: Court orders crypto company to pay N140m to EFCC for illegal USDT/Naira transaction.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
