Crypto.com will delist USDT and nine other tokens for EU users by January 31, 2025.
Withdrawals for affected tokens will remain available until March 31, 2025.
Singapore-based crypto exchange platform Crypto.com is working on Tether’s USDT and nine other tokens for users across the European Union. The decision follows the stringent compliance requirements of the Markets in Crypto-Assets (MiCA) framework.
The delistings, confirmed via an official communication on January 28, will take effect on January 31, 2025. Affected tokens include Wrapped Bitcoin , Dai , Pax Dollar (PAX), PayPal USD , and Liquid CRO (LCRO), among others. While purchases and deposits for these tokens will be suspended, withdrawals will be allowed until March 31.
Regulatory Hurdles for Stablecoins
The move aligns with recent guidance from the European Securities and Markets Authority (ESMA), urging crypto service providers to restrict non-compliant stablecoins by the end of January.
A key requirement under MiCA is for stablecoins to hold over 60% of their reserves with recognized banks and obtain an e-money license. Tether, the world’s largest stablecoin with a market cap of approximately $139 billion, has so far failed to meet these criteria.
The failure to meet MiCA requirements has already led to delistings of USDT on major exchanges like and Binance in Europe, further shrinking the token’s market footprint on the continent.
As a result of its struggles in Europe, the largest stablecoin faced its biggest drop in its market cap in the past two years. The market value, which was around $140 billion in December 2024, dropped to $137 billion earlier this month.
On the other hand, Circle, Tether’s biggest rival and the second-largest stablecoin USDC issuer, gained approval under MiCA last year. It received a license from the Autorité de Contrôle Prudentiel et de Résolution (ACPR) to issue its stablecoins, USDC and EURC, within the EU.
Why Is USDT Non-compliant with MiCA?
Tether’s removal from European exchanges could have wide-reaching consequences. As a popular stablecoin for trading cryptocurrencies and fiat, USDT plays an important role in maintaining market liquidity. Its absence may lead to reduced trading efficiency and heightened price volatility.
Stablecoin issuers now face a clear choice: comply with MiCA or risk losing access to European markets. Yet, Tether has publicly indicated resistance to compliance. The company considers it too risky to convert its holdings from US bonds to cash in European banks, as required by MiCA regulations.
This reluctance stems from past experiences. In 2018, Tether faced complications when funds were frozen due to legal issues involving one of its banking partners. USDC encountered similar risks in March 2023 when its collateral was trapped following the collapse of a US bank.
For now, European users still have access to USDT and other delisted tokens through decentralized exchanges and non-custodial wallets. However, Tether’s long-term future in Europe remains uncertain.
