The move follows Coinbase’s decision late last year to delist USDT in Europe for similar compliance reasons. The increased scrutiny under MiCA has created uncertainty around the future of Tether’s stablecoin within the European Union, despite its dominance in global stablecoin markets.

In an email sent to users on Jan. 28, Crypto.com outlined its plans to discontinue trading support for USDT, along with several other assets, including Dai (DAI), Wrapped Bitcoin (WBTC), Pax Gold (PAXG), Pax Dollar (USDP), and three proprietary derivative tokens operated by the exchange.

European customers holding these assets have until March 31, 2025, to convert their holdings into MiCA-compliant tokens. After that deadline, any remaining balances will be automatically converted to an approved stablecoin or asset of equivalent value.

A Crypto.com representative confirmed that the decision applies only to EU users, stating:

“In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on the 31st of January, 2025. Users holding these tokens will have until the end of Q1 to convert them to MiCA-compliant assets, otherwise they will be automatically converted.”

MiCA’s Impact on Stablecoins in Europe

The European Union’s MiCA framework, which was introduced to establish uniform regulations for crypto assets across the bloc, has placed strict limitations on stablecoins, including reserve backing, transparency, and issuance requirements.

Crypto exchanges seeking to operate within the EU under MiCA’s guidelines must phase out noncompliant assets, and USDT has become a primary target due to uncertainties about its ability to meet these new standards.

Despite MiCA’s restrictions, Tether has expressed confidence in its ability to remain compliant in the EU market. In December 2024, the company announced an investment in StablR, a European stablecoin provider, as part of its efforts to bolster its euro-pegged stablecoin offering.

However, the long-term future of USDT within the EU remains unclear. If regulatory pressure continues to mount, other platforms may follow suit, potentially pushing Tether out of key Western markets.

Is This a Sign of Broader USDT Delistings?

While MiCA only applies to Europe, Crypto.com and Coinbase’s delisting of USDT could be an early signal of broader regulatory challenges for the stablecoin.

Tether’s $138 billion market cap makes it the most widely used stablecoin globally, particularly in emerging markets outside the U.S. and Europe. However, if additional jurisdictions, including the U.S., impose stricter oversight, major crypto platforms could face increasing pressure to phase out USDT in favor of stablecoins deemed more compliant with financial regulations.

For now, Tether remains dominant in global crypto markets, but the push for compliance under MiCA and other evolving regulations could reshape the stablecoin landscape in the years ahead.