Crypto Exchange Crypto.com to Delist Tether’s USDT
The cryptocurrency world is about to see a significant shakeup! Crypto.com, one of the leading crypto exchanges, has announced that it will delist Tether’s USDT along with nine other tokens in Europe by January 31, 2025. This decision comes as a direct response to the European Union’s strict new crypto regulations under the Markets in Crypto-Assets Regulation (MiCA) framework.
Aspect | Details |
Exchange | Crypto.com |
Affected Token | Tether’s USDT |
Other Tokens | WBTC, DAI, PAX, PAXG, PYUSD, CDCETH, CDCSOL, LCRO, XSGD |
Reason | Compliance with MiCA regulations |
Deadline for Purchase Ban | January 31, 2025 |
Deadline for Withdrawals | March 31, 2025 |
Post-Deadline Action | Auto-conversion to MiCA-compliant assets |
Alternatives | USDC and other MiCA-compliant stablecoins |
Crypto.com Next Steps | Seeking MiCA license in Malta |
Why is Crypto.com Delisting USDT?
The move to delist USDT follows guidance from the European Securities and Markets Authority (ESMA). According to ESMA, all crypto asset service providers (CASPs) must ensure that stablecoins comply with MiCA regulations, which require issuers to obtain an e-money license in at least one EU country.
A Crypto.com spokesperson confirmed to Cointelegraph that the platform would disable purchases of USDT by the end of January. Users will have until March 31, 2025, to withdraw or convert their assets to compliant alternatives.
“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 another asset of corresponding market value.”
What Other Cryptos Are Affected?
Aside from USDT, Crypto.com will also delist nine other tokens:
Token | Symbol |
---|---|
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 |
What Happens If You Hold USDT After March 31?
If you still have USDT or any of the other delisted tokens after March 31, Crypto.com will automatically convert them into a MiCA-compliant stablecoin or an asset of equivalent market value. So, if you’re an EU-based trader, you need to act fast and convert your holdings before the deadline.
The Bigger Picture: MiCA’s Impact on Crypto Exchanges
The MiCA framework, which became law on December 30, 2024, is shaking up the European crypto market. It mandates that all stablecoins in the EU meet strict licensing requirements. Any non-compliant stablecoins, such as USDT, will no longer be available for trading.
Many major exchanges have already taken action. Coinbase, for example, delisted USDT in Europe back in October 2024, urging users to convert their holdings to compliant alternatives like Circle’s USD Coin (USDC). USDC was among the first stablecoins to meet MiCA’s requirements.
Is This the End of USDT in Europe?
For now, USDT’s future in Europe looks uncertain. Tether, the company behind USDT, has acknowledged the regulatory changes and is working to address the issue. However, MiCA has made it clear that non-compliant stablecoins won’t be tolerated in the EU market.
Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s Technical Committee, emphasized that there was no room for debate:
“By ESMA’s definition, USDT is a non-compliant asset. Tether does not have a license. No trace of USDT should remain, not even in ‘sell-only’ mode by March 31.”
What Should Crypto Investors Do?
If you’re holding USDT or any of the other delisted tokens on Crypto.com, here’s what you need to do:
- Convert or Withdraw ASAP – You have until March 31, 2025, to convert your USDT into a MiCA-compliant stablecoin like USDC.
- Stay Updated – Keep an eye on official announcements from Crypto.com and Tether regarding any last-minute regulatory changes.
- Explore Other Exchanges – If you rely heavily on USDT for trading, check if other exchanges still support it (though most will likely follow suit).
- Understand MiCA Regulations – Compliance is the new norm in Europe. If you’re a long-term investor, knowing the regulations will help you make informed decisions.
What’s Next for Crypto.com?
Crypto.com is actively working on obtaining a MiCA license in Malta. This move will allow the exchange to continue offering services in compliance with EU regulations. The company has stated that it remains committed to providing a secure and legally compliant trading environment for European users.
With MiCA enforcement tightening, other crypto platforms may soon follow Crypto.com’s lead. If you trade in Europe, expect more changes in the coming months.
FAQs About Crypto.com’s USDT Delisting
Crypto.com is delisting USDT to comply with the European Union’s MiCA regulations, which require all stablecoins to hold an e-money license.
If you don’t convert or withdraw your USDT before March 31, Crypto.com will automatically swap it for a MiCA-compliant stablecoin or another asset of equivalent market value.
Yes, Crypto.com will allow withdrawals until March 31, 2025. However, you won’t be able to purchase or deposit USDT after January 31.
Other affected tokens include 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), and XSGD.
MiCA-compliant stablecoins like Circle’s USD Coin (USDC) are good alternatives, as they meet the EU’s regulatory standards.
Final Thoughts
The delisting of USDT by Crypto.com marks a major shift in the European crypto market. While this move may disrupt some traders, it also signals a push towards greater transparency and regulation in the industry. If you’re trading in Europe, now is the time to adapt to these changes and ensure your portfolio remains compliant.