Crypto.com to Delist USDT and Nine Tokens in EU by January 2025
Crypto.com plans to delist Tether's USDT and nine other tokens for European Union users. This decision, effective January 31, 2025, follows compliance requirements under the Markets in Crypto-Assets (MiCA) framework.
- The delisted tokens include Wrapped Bitcoin, Dai, Pax Dollar, PayPal USD, and Liquid CRO.
- Purchases and deposits will be suspended, but withdrawals remain available until March 31, 2025.
Regulatory Context
This action aligns with guidance from the European Securities and Markets Authority (ESMA), which calls for crypto service providers to limit non-compliant stablecoins by the end of January.
- MiCA mandates stablecoins to hold over 60% of reserves with recognized banks and obtain an e-money license.
- Tether has not met these criteria, leading to its delisting on exchanges like Coinbase and Binance.
- Tether’s market cap decreased from approximately $140 billion in December 2024 to $137 billion recently.
- In contrast, Circle's USDC received MiCA approval and a license to operate within the EU.
Implications of Non-compliance
Tether's removal could affect market liquidity and increase price volatility. Stablecoin issuers must either comply with MiCA or risk losing access to European markets. Tether has expressed reluctance to comply, citing risks associated with converting US bonds to cash in European banks.
- Tether's past complications in banking relationships contribute to its cautious stance.
- European users can still access USDT through decentralized exchanges and non-custodial wallets, but Tether's future in Europe remains uncertain.