- Crypto.com will delist USDT and nine other tokens in Europe by January 31, 2025.
- Users have until March 31 to convert non-compliant assets or face automatic swaps to MiCA.
- Crypto.com’s delistings align with ESMA’s directive and the EU’s new MiCA crypto regulations.
Crypto.com has declared it will delist Tether’s USDT and nine other tokens from its European platform. This delisting is in light of the European Union’s Markets in Crypto-Assets Regulation (MiCA). These tokens will be unavailable for purchase as of 31 January, and users can close their trades until this date.
Conversion Deadline Set
The exchange allowed users to withdraw their assets until March 31st. After that, all tokens that do not meet the necessary standards will be automatically exchanged for MiCA-compliant assets or stablecoins. The tokens that have been impacted include Wrapped Bitcoin (WBTC), DAI, Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD, and others.
This comes after the European Securities and Markets Authority (ESMA) issued a directive to this effect. On 17 January, the ESMA warned European crypto-asset service providers against dealing in stablecoins not in accordance with the MiCA. Crypto.com’s delistings are in line with the decision made by ESMA and other changes happening within the industry.
The MiCA rules are intended to harmonize the operations of the crypto market in the EU member countries. These rules are designed to enhance the protection of investors and also to safeguard the market. USDT, which is the biggest stablecoin by market capitalization, is currently at the center of these measures.
Crypto.com follows in the footsteps of Coinbase, which in December 2024 removed USDT from its European exchange for not meeting the standards of MiCA. Stablecoins like USD Coin (USDC) were accepted by the platform to convert USDT into MiCA-compliant stablecoins.
Related: Circle Unveils Paymaster for Easy USDC Gas Fee Payments
The MiCA framework went into effect on December 30, 2024. Since then, some crypto platforms have begun trying to obtain MiCA licenses, while others have been reviewing their offerings. Crypto.com is one of the companies that has not been left behind in preparing for these new standards.
USDT Vs. USDC Market Caps
USDT has a market capitalization of $139.41 billion. Its competitor, USDC, has become MiCA compliant, and its market capitalization is $52.54 billion. In the current and future environment, the status of non-compliant stablecoins in the European Union remains relatively unclear.
Crypto.com’s delisting is just one of the many shifts in the European crypto space. With MiCA regulations guiding the industry, more exchanges will probably adopt similar measures to meet the requirements.
