Crypto.com delists Tether’s USDT in EU, alongside nine other tokens

Major cryptocurrency exchange Crypto.com decided to delist Tether’s USDT in the European Union amid a rising regulatory pressure.

According to an email sent to users, Crypto.com will delist USDT alongside the decentralized stablecoin DAI, tokenized Bitcoin (BTC) Wrapped Bitcoin (WBTC), gold-linked token Pax Gold (PAXG), centralized stablecoin Pax Dollar (USDP), and the other products listed on the platform. A spokesperson also told industry news outlet Cointelegraph:

“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 announcement comes just days after Crypto.com announced that it was able to secure a Markets in Crypto Assets (MiCA) license to continue operating in the European Union. The firm’s president and COO Eric Anziani said:

“Securing a MiCA licence has been a major priority for us in recent years, and receiving this approval further cements our continued commitment to being the most compliant and regulated crypto platform globally. […] We look forward to offering more European users our industry-leading products and services in a regulated environment.”

MiCA introduced much more stringent requirements for companies in the cryptocurrency industry, including stablecoin operators. Under the new rules crypto exchanges operating in the EU may be forced to delist stablecoins from issuers that do not hold the necessary permits — including Tether which was unable to secure such a license so far.

This is also seen as an opportunity by some players in the industry, and also others who consider joining it. As reported in late September 2024, major stock and cryptocurrency exchange Robinhood and neobank Revolut are considering entering the stablecoin market.

So far, the top contender for taking over the European stablecoin market is Circle’s USD Coin (USDC). Circle already holds the necessary license to continue its operations in the European Union and is already capitalizing on its advantageous position.

In December, world’s leading crypto exchange Binance announced a partnership with Circle aimed at accelerating its adoption. Among other things, this led to the exchange adopting USDC as the primary stablecoin in its treasury—an action described in the announcement as “a powerful signal about the world moving on-chain.”

The post Crypto.com delists Tether’s USDT in EU, alongside nine other tokens appeared first on ReadWrite.