A prominent cryptocurrency exchange has announced the decision to remove Tether’s USD-pegged stablecoin, known as USDT, along with nine additional tokens. This action is part of its efforts to conform to the European Union’s Markets in Crypto-Assets Regulation (MiCA).
The tokens set to be delisted alongside USDT 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. Deposits for all listed tokens will be suspended on January 31, with withdrawals also disabled, leading to their complete removal by March 31, 2025. Users holding these tokens will have until the end of March to exchange them for assets that comply with MiCA, or they will be converted automatically to a compliant stablecoin or another asset of similar market value.
This announcement follows the acquisition of a license in Malta, which will serve as the operational hub for meeting MiCA requirements. The implementation of MiCA regulations aims to provide a structured and regulated environment for digital assets within the EU.
The MiCA regulation was fully put into effect by the end of 2024, beginning with the introduction of stablecoin rules in mid-2024, with subsequent regulations governing transactions effective thereafter. In light of this, the European Securities and Markets Authority (ESMA) has urged crypto asset service providers to swiftly act to delist or restrict stablecoins that do not adhere to MiCA standards by the January deadline.
In addition to this exchange, other platforms such as Coinbase and Binance are also reassessing their approach to stablecoins in response to these emerging regulations. The trend among crypto exchanges has been to establish an EU presence to comply with MiCA’s guidelines, with Malta being a popular choice for many, including another well-known exchange.
Once licensed under MiCA, exchanges will be able to “passport” their services, enabling them to offer various cryptocurrency services throughout the European Economic Area (EEA). This comprehensive regulatory framework is anticipated to shape the future of the cryptocurrency landscape in Europe, ensuring that service providers adhere to stringent compliance measures.