Crypto.com Delists Tether's USDt and Other Tokens Amid MiCA Compliance

Key Delistings and Compliance

Crypto.com has announced the suspension of purchases for Tether's USDt and nine other cryptocurrencies, effective January 31, 2024, to comply with Europe's Markets in Crypto-Assets Regulation (MiCA) framework. Affected tokens include Wrapped Bitcoin (WBTC) and Dai (DAI). Deposits for these tokens will no longer be accepted, while withdrawals will remain available until March 31, 2025. Any remaining holdings after this date will be converted into MiCA-compliant assets of equivalent value.

Impact on Users

The delisting aligns with the European Securities and Markets Authority's (ESMA) directive for crypto service providers in the EU to restrict non-MiCA-compliant stablecoins. This move reflects the broader regulatory efforts in the European Union to oversee the cryptocurrency market, with MiCA regulations fully enforced as of December 30, 2023.

Regulatory Context

Other major exchanges, such as Coinbase, have also taken similar steps. Coinbase delisted USDT in October 2024, offering conversions to compliant stablecoins like Circle's USD Coin (USDC). Despite these moves, some EU-based providers continued trading USDT until ESMA's directive.

Market Implications

As the largest stablecoin by market capitalization, USDT's presence in the EU is significant, with a valuation of $139 billion. In contrast, USDC, a MiCA-compliant stablecoin, holds a market cap of $52 billion. This shift underscores the evolving regulatory landscape in Europe, as service providers adapt to comply with MiCA requirements.