Crypto exchange Crypto.com has announced plans to delist Tether’s USDT and nine other cryptocurrencies in response to the European Union’s Markets in Crypto-Assets (MiCA) regulation. This decision aligns with new requirements set by the European Securities and Markets Authority (ESMA), pushing crypto asset service providers (CASPs) to restrict non-MiCA-compliant stablecoins. A spokesperson from Crypto.com confirmed on Jan. 29 that the exchange will suspend purchases of USDT and the affected tokens starting Jan. 31. While deposits will be disabled, withdrawals will remain available until the end of Q1 2025. The full delisting of these tokens is scheduled for March 31. “Users holding these tokens will have until the end of Q1, 31st of March, to convert them to MiCA-compliant assets, otherwise they will be automatically converted to a compliant stablecoin or asset of corresponding market value,” the Crypto.com representative stated. List of Tokens Affected by Crypto.com’s Delisting In addition to USDT, the following nine cryptocurrencies will be removed from Crypto.com in Europe: Wrapped Bitcoin (WBTC) Dai (DAI) Pax Dollar (PAX) Pax Gold (PAXG) PayPal USD (PYUSD) Crypto.com Staked ETH (CDCETH) Crypto.com Staked SOL (CDCSOL) Liquid CRO (LCRO) XSGD (XSGD) The decision follows a Jan. 28 email notice sent to Crypto.com users, highlighting that the exchange is enforcing compliance with MiCA, which took full effect on Dec. 30, 2024. Impact of MiCA on Stablecoins and Crypto Exchanges MiCA is the European Union’s first comprehensive regulatory framework for digital assets, designed to standardize the treatment of cryptocurrencies across EU member states. It introduces licensing requirements for exchanges and strict compliance rules for stablecoins. One of MiCA’s primary objectives is to regulate stablecoins issued within the EU and prevent risks associated with unregulated digital assets. To remain compliant, stablecoin issuers must hold fully-backed reserves, register within the EU, and meet stringent transparency requirements. This regulation has forced crypto firms to reassess their listings, with the European Securities and Markets Authority (ESMA) advising CASPs to eliminate non-compliant stablecoins by March 31, 2025. Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, emphasized ESMA’s stance, stating, “No trace of USDT should remain, not even in ‘sell-only’ mode,” reinforcing the EU’s push toward full MiCA compliance. USDT Delistings in the EU: A Growing Trend The removal of USDT from major exchanges in Europe has been an ongoing development since the introduction of MiCA. In October 2024, Coinbase was the first major exchange to announce that USDT was non-compliant with MiCA, leading to its delisting in December 2025. Coinbase allowed its European customers to convert USDT into MiCA-approved stablecoins, including Circle’s USDC. Despite MiCA enforcement, several exchanges continued offering USDT in Europe. However, as regulatory pressure increased, more CASPs, including Crypto.com, have taken steps toward compliance. Crypto.com has also been actively working to obtain its MiCA license in Malta, where several crypto firms are seeking approval under the new framework. Tether’s Market Position and the Rise of MiCA-Compliant Stablecoins USDT remains the largest stablecoin globally, with a market capitalization of $139 billion as of Jan. 29, 2025, according to CoinGecko. However, its future in the European market remains uncertain due to MiCA restrictions. In contrast, USDC—Tether’s biggest competitor—received regulatory approval under MiCA in July 2024. With a market cap of $52 billion, USDC is gaining traction as a fully compliant alternative for EU users. Tether has previously faced scrutiny over its reserve transparency and regulatory compliance, which contributed to its exclusion from MiCA. The EU’s strict stance on stablecoin issuers is likely to shift liquidity toward MiCA-approved options like USDC, potentially reshaping the stablecoin market within the region. Crypto.com’s Role in the European Crypto Market Crypto.com is one of the world’s largest cryptocurrency exchanges, providing trading services, staking options, and crypto-backed financial products. Headquartered in Singapore, the platform has expanded aggressively in the European market, making regulatory compliance a key priority. The exchange has been actively adapting to MiCA regulations, ensuring that its services align with EU legal requirements. The delisting of USDT and other non-compliant tokens reflects Crypto.com’s strategy to secure its regulatory standing and maintain operations in one of the world’s most tightly regulated crypto markets. What This Means for European Crypto Users For European traders and investors, the removal of USDT presents both challenges and opportunities. Those relying on USDT for trading pairs and liquidity may need to transition to MiCA-compliant alternatives like USDC. With a growing number of exchanges following Crypto.com’s lead, users should expect further restrictions on non-compliant stablecoins across the EU. The regulatory shift could enhance consumer protection and financial stability in the crypto space but may also limit the options available to investors. As the MiCA framework continues shaping the European crypto industry, exchanges, stablecoin issuers, and traders must adapt to the new regulatory landscape. Crypto.com’s decision to delist USDT is a clear indicator of how compliance is becoming a top priority for platforms operating in the EU.
