TL;DR
- Crypto.com will delist USDT and nine other tokens from its European platform to comply with MiCA regulations, with users having until March 31 to convert their affected assets.
- After January 31, users will no longer be able to purchase or deposit the affected tokens, but withdrawals will remain available until the end of Q1 2025.
- The delisting aims to create a more secure market environment, though it has received mixed reactions from users and industry analysts.
Crypto.com will delist Tether (USDT) and nine other tokens from its European platform to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulations. This move underscores the exchange’s commitment to regulatory compliance within the evolving European crypto landscape. Users have until March 31 to convert their affected assets before fully delisting.
https://twitter.com/WazzCrypto/status/1884273338975150502
Impact on Users
The delisting of USDT and other tokens is a significant development for Crypto.com users in Europe. After January 31, users will no longer be able to purchase or deposit the affected tokens.
However, withdrawals will remain available until the end of the first quarter 2025. Users holding these tokens must convert them to MiCA-compliant assets by March 31 to avoid automatic conversion into a compliant stablecoin or asset of equivalent market value.
List of Affected Tokens
In addition to USDT, the tokens set to be delisted 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 (XSGD). This comprehensive list reflects the exchange’s efforts to align with MiCA regulations and ensure compliance with European financial authorities.
Regulatory Compliance and Market Impact
The delisting comes in response to a directive from the European Securities and Markets Authority (ESMA), which has urged crypto-asset service providers to restrict non-MiCA-compliant stablecoins by March 31, 2025. This regulatory-driven action aims to create a more secure and stable market environment by ensuring that all supported assets meet stringent compliance standards.
The immediate reaction from the market has been mixed. While some users express concerns about the impact on liquidity and trading options, others see this as a necessary step towards a more regulated and secure crypto market.
Industry analysts suggest that similar moves may follow across other exchanges if compliance remains a challenge. Crypto.com’s decision to delist USDT and nine other tokens highlights the ongoing challenges cryptocurrency exchanges face as they navigate an evolving regulatory landscape.
