Crypto.com has announced the delisting of Tether’s USDT and nine other tokens across its European platforms, reinforcing its commitment to complying with evolving MiCA regulatory standards within the EU.
The 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. The move aligns with the exchange’s broader efforts to ensure regulatory compliance and maintain a secure trading environment for its users.
Starting January 31, purchases of these tokens will no longer be allowed, and deposits will be disabled soon after. However, users can still withdraw them until the end of March 2025, when the tokens will be fully removed from the platform.
Users holding these tokens will have until 31 March 2025 to convert them into MiCA-compliant assets. Post this deadline, any remaining holdings will be automatically converted to a compliant stablecoin or an asset of equivalent market value.
The delisting of Tether (USDT) by Crypto.com is a significant development in the cryptocurrency industry, reflecting the growing influence of regulatory frameworks on digital asset platforms. The European Securities and Markets Authority (ESMA) has been proactive in enforcing these regulations, urging crypto asset service providers to ensure compliance with the new standards.
With the growing adoption of blockchain technology, digital assets, and cryptocurrencies over the past decade, regulators worldwide have faced a critical decision on regulation framework. The absence of clear regulations has been linked to major cryptocurrency scandals, such as FTX and Terra Luna. Additionally, factors like anti-money laundering laws and tax policies have contributed to the increasing oversight of crypto-related activities and assets.
The Markets in Crypto-Assets Regulation (MiCA) institutes uniform EU market rules for crypto-assets. The regulation covers crypto-assets that are not currently regulated by existing financial services legislation. Key provisions for those issuing and trading crypto-assets (including asset-reference tokens and e-money tokens) cover transparency, disclosure, authorisation and supervision of transactions.
The new legal framework supports market integrity and financial stability by regulating public offers of crypto-assets and by ensuring consumers are better informed about their associated risks.
The MiCA framework, fully implemented at the end of 2024, establishes comprehensive regulatory standards for crypto-assets within the EU. It mandates that stablecoin issuers must be registered as electronic money institutions to operate within the bloc. Tether, the issuer of USDT, currently lacks this specific licensing, rendering USDT non-compliant under MiCA guidelines.
Under MiCA, crypto-asset issuers must publish detailed whitepapers outlining risks and terms, while service providers must implement strong governance structures, complaint-handling procedures, and safeguards against market abuse. The regulation also enforces rules to prevent insider trading and market manipulation, ensuring fair and transparent trading practices.
MiCA prioritizes financial stability and consumer protection by imposing capital requirements on service providers to help them withstand financial shocks. It mandates clear pricing policies, guidelines for handling consumer assets, and education on crypto-related risks.
Additionally, risk management protocols must be in place to address cybersecurity threats and fraud. Compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations is also a key aspect, requiring thorough Know Your Customer (KYC) procedures and transaction monitoring. By enforcing these measures, MiCA aims to create a safer and more transparent crypto market within the EU.
This delisting follows Crypto.com’s recent acquisition of a license from the Malta Financial Services Authority, positioning Malta as its base for MiCA compliance. The exchange’s proactive approach reflects its dedication to operating within the EU’s regulatory framework and ensuring the security and compliance of its offerings.
As the MiCA framework reshapes the crypto industry within the EU, exchanges and token issuers are navigating the complexities of compliance to ensure continued operations. Users are advised to stay informed about such developments and understand how these changes may impact their crypto holdings and transactions.
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