Crypto.com has announced that it will delist Tether's USDT and nine other tokens for its European users, effective January 31, 2025. This decision aligns with the new Markets in Crypto-Assets (MiCA) regulations, which impose stricter compliance requirements on cryptocurrency exchanges operating in the EU. Users will have until March 31, 2025, to convert their holdings to compliant assets.
Key Takeaways
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Crypto.com will delist USDT and nine other tokens in Europe on January 31, 2025.
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The delisting is in response to the MiCA regulations aimed at enhancing crypto asset compliance.
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Users have until March 31, 2025, to convert their assets to MiCA-compliant tokens.
Background on MiCA Regulations
The Markets in Crypto-Assets (MiCA) regulation was introduced to create a unified framework for cryptocurrency operations across the European Union. It aims to protect consumers and ensure the integrity of the financial system by regulating stablecoins and other crypto assets. As part of this initiative, exchanges must comply with specific standards, which include recognizing stablecoin issuers as authorized electronic money institutions.
Tokens Affected by the Delisting
The following tokens will be delisted alongside USDT:
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Wrapped Bitcoin (WBTC)
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Dai (DAI)
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Pax Dollar (PAX)
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Pax Gold (PAXG)
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PayPal USD (PYUSD)
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Crypto.com Staked ETH (CDCETH)
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Crypto.com Staked SOL (CDCSOL)
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Liquid CRO (LCRO)
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XSGD (XSGD)
Crypto.com will suspend purchases of 10 tokens in compliance with MiCA on Jan. 31. Source: WazzCrypto
User Guidance and Next Steps
Crypto.com has communicated that after the delisting, users will not be able to purchase the affected tokens. However, they will still be able to withdraw their holdings until the end of the first quarter of 2025. Users are encouraged to convert their assets to compliant tokens before the deadline to avoid automatic conversion to a compliant stablecoin or asset of corresponding market value.
Implications for Tether and Other Tokens
The delisting of USDT marks a significant shift in the European crypto landscape, following similar actions by other exchanges like Coinbase. Tether's status in the EU has become increasingly precarious as regulatory scrutiny intensifies. The company has expressed confidence in meeting MiCA requirements but has yet to secure the necessary recognition as an electronic money issuer.
Conclusion
As the cryptocurrency market continues to evolve under regulatory pressures, exchanges like Crypto.com are adapting to comply with new laws. The delisting of USDT and other tokens highlights the ongoing challenges faced by stablecoin issuers in meeting regulatory standards. Users in the EU must act swiftly to manage their holdings in light of these changes, ensuring compliance and minimizing disruption to their trading activities.
Sources
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Crypto.com to delist Tether for EU users on Jan. 31, crypto.news.
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News and Analysis on Cryptocurrencies, Blockchain and Decentralized Finance - Cryptonomist, The Cryptonomist.
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Crypto.com to delist Tether USDT, 9 other tokens in Europe on Jan. 31, MSN.
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Crypto.com to delist Tether USDT, 9 other tokens in Europe on Jan. 31, Cointelegraph.
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Crypto.com will delist USDT and 8 other tokens in Europe on January 31 - ChainCatcher, ChainCatcher.