A prominent cryptocurrency exchange plans to eliminate Tether’s USDT, along with nine additional tokens, to adhere to the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework. The other tokens affected by this delisting include Wrapped Bitcoin, Dai, Pax Dollar (PAX), Pax Gold, PayPal USD, Crypto.com Staked ETH (CDCETH), Crypto.com Staked SOL (CDCSOL), Liquid CRO (LCRO), and XSGD.
This decision follows the exchange’s recent acquisition of a license in Malta, which will serve as its headquarters for compliance with MiCA regulations. As part of this process, the exchange has announced that deposits for USDT and the other nine tokens will be suspended on January 31, 2025. Further, withdrawals will no longer be permitted, and the affected tokens will be entirely delisted by March 31, 2025. Customers holding these tokens have until the end of March to convert them into assets that comply with MiCA; otherwise, any remaining tokens will be automatically swapped for a compliant stablecoin or another asset with equivalent market value.
The MiCA framework, which was fully enacted by the EU at the close of 2024, initially established regulations for stablecoins in mid-2024. By the year’s end, additional transaction regulations were also implemented. The European Securities and Markets Authority (ESMA) has recently encouraged crypto asset service providers to act swiftly, with a deadline of January 31, to delist or restrict stablecoins that fall short of MiCA standards.
In light of these developments, multiple cryptocurrency exchanges, including Coinbase and Binance, are re-evaluating their approaches toward stablecoins. Many exchanges are establishing bases within the EU to meet the requirements of MiCA. For instance, besides the aforementioned exchange, another notable platform has similarly opted for Malta as its EU operational hub. Under the MiCA regulations, licensed exchanges benefit from a “passporting” feature that allows them to provide crypto services across the European Economic Area.
Overall, the regulatory landscape within the EU is undergoing significant changes, reshaping the operations and offerings of various crypto exchanges and their respective assets. The emphasis on compliance with MiCA is prompting a reevaluation of the digital asset offerings within the region, underscoring the importance of aligning with evolving regulatory standards. This shift aims to foster a more secure and regulated crypto market within the European Union.