A notable crypto exchange is set to remove Tether’s USD-pegged stablecoin, USDT, along with nine other cryptocurrencies to adhere to the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework. The nine tokens facing 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 recent approval of a license in Malta, which has become a key location for compliance with the MiCA regulations. According to reports, all deposits for USDT and the other nine tokens will be halted on January 31. Withdrawals will also be disabled, with a complete delisting set for the conclusion of the first quarter of 2025, specifically on March 31.
Users holding these tokens will have until the end of March to convert them into assets that comply with MiCA. If they do not take action by then, their holdings will be automatically switched to a compliant stablecoin or another asset of similar market value, as stated by a representative from the exchange.
The MiCA framework was fully implemented at the end of 2024 and laid down comprehensive regulations for stablecoins. These regulations include rules for transactions that took effect late last year. The European Securities and Markets Authority (ESMA) has been proactive in encouraging crypto asset service providers to take immediate steps by January 31 to either discard stablecoins that don’t meet MiCA standards or restrict their usage.
Meanwhile, other exchanges like Coinbase and Binance are also evaluating their approaches to stablecoins in light of the new regulations. Many crypto platforms are choosing to establish a base within the European Union in order to comply with MiCA. Alongside the aforementioned exchange, Gemini has also selected Malta as its EU operational hub. Under MiCA, licensed exchanges have the ability to “passport” their licenses and offer crypto services throughout the European Economic Area.
The shifting landscape of crypto regulations in the EU has been evident as firms strive to align with compliance standards, leading to alterations in service offerings and asset availability.