Crypto.com has announced the delisting of Tether's USDT and nine other non-compliant tokens in Europe, effective January 31, 2025. This decision aligns with the Markets in Crypto-Assets (MiCA) regulation framework, marking a significant step toward standardized oversight in the EU cryptocurrency market.
Key Details of the Delisting
- Affected Tokens: USDT, Wrapped Bitcoin (WBTC), Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD (PYUSD), Crypto.com Staked ETH (CDCETH), Crypto.com Staked SOL (CDCSOL), Liquid CRO (LCRO), and XSGD.
Timeline:
- January 31, 2025: Suspension of purchases and new deposits.
- March 31, 2025: Final deadline for withdrawals and full delisting.
- User Action Required: Holders must convert assets to MiCA-compliant tokens by the March deadline. Non-compliant tokens will be automatically swapped for stablecoins or assets of equivalent market value.
👉 Stay updated on regulatory changes affecting your crypto portfolio
Understanding MiCA's Regulatory Impact
MiCA, fully effective since December 2024, mandates strict compliance for Crypto Asset Service Providers (CASPs) operating in the EU. Key implications include:
- Investor Protection: Enhanced transparency and disclosure requirements.
- Stablecoin Oversight: Non-compliant stablecoins like USDT face restrictions, while approved alternatives (e.g., USDC) gain traction.
- Industry Adaptation: Exchanges like Coinbase Europe have already suspended USDT trading, offering swaps to compliant assets.
Market Shift: USDT vs. USDC
- USDT: $139.41B market cap but non-compliant under MiCA.
- USDC: $52.63B market cap and MiCA-approved, positioning it as a preferred alternative in Europe.
What This Means for Users and Exchanges
For Users:
- Monitor deadlines to avoid forced asset swaps.
- Diversify holdings with MiCA-compliant tokens like USDC.
For Exchanges:
- Compliance is critical to maintain EU market access.
- Expect further delistings as MiCA enforcement intensifies.
👉 Explore MiCA-compliant trading options today
FAQs
Why is Crypto.com delisting USDT in Europe?
To adhere to MiCA regulations, which prohibit non-compliant stablecoins and tokens.
Can I still withdraw my USDT after January 31, 2025?
Yes, withdrawals are permitted until March 31, 2025.
Which tokens are MiCA-compliant alternatives to USDT?
USD Coin (USDC) is currently the leading MiCA-approved stablecoin.
How does MiCA affect other exchanges?
Platforms like Coinbase have already adjusted offerings, with more expected to follow.
Conclusion
Crypto.com's delisting underscores the EU's rigorous approach to crypto regulation under MiCA. The March 31, 2025 deadline serves as a pivotal moment for market adaptation, with compliance becoming non-negotiable for industry participants. Users and exchanges must proactively navigate these changes to ensure uninterrupted access to the European market.