by Jude Ayua

Crypto.com has delisted Tether’s USD-pegged stablecoin (USDT) along with nine other tokens in compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation. The other tokens include Wrapped Bitcoin (WBTC), Dai, Pax Dollar, Pax Gold, PayPal USD, Crypto.com Staked ETH and SOL, Liquid CRO, and XSGD.

This follows an earlier announcement made by the exchange on 29 January that it would delist certain stablecoin tokens for MiCA compliance purposes. It also added that it would, consequently, suspend deposits for delisted tokens 31 January 2025. Crypto.com will disable withdrawals and implement full delisting on 31 March. 

A Crypto.com spokesperson disclosed that holders of the affected tokens must convert the tokens to MiCA-compliant assets by the deadline or face automatic conversion to compliant stablecoins or equivalent market-value assets. Crypto.com’s decision followed the European Securities and Markets Authority (ESMA)’s statement on 17 January restating its position on stablecoins’ issuance in the EU under MiCA. MiCA regulations, which came into full force in December 2024, require strict standards for stablecoins issuance and transactions within the EU.

Read also: Introduction to Stablecoins: USDT, USDC, and BUSD.

ESMA’s latest guidance on stablecoins compliance with MiCA

ESMA said in its statement: “In accordance with MiCA … CASPs are expected to take actions to align their services promptly with this guidance, so as to avoid violating Titles III and IV of MiCA.”  ESMA encouraged National Competent Authorities (NCAs) to guide Crypto Asset Service Providers (CASPs) through the process of delisting non-compliant stablecoins, ensuring consistency throughout the EU. “NCAs are encouraged to cooperate and coordinate actions in this regard,” ESMA advised.

The statement explained that CASPs are expected to stop making all crypto-assets that would qualify as ARTs and EMTs (stablecoins) but for which their issuers are not authorised in the EU available for trading. To enable users transition to MiCA-compliant alternatives, ESMA advised CASPs to restrict the buying of non-MiCA compliant stablecoins and avoid listing new non-MiCA compliant stablecoins. 

“To allow EU investors to liquidate or convert their position in non-MiCA compliant ARTs and EMTs, concerned CASPs may, however, maintain crypto-asset services for these products on a “sell only” basis for a longer period (until the end of Q1 2025)” ESMA advised.

Read also: Stablecoins in the European Market: MiCA, Tether, and Potential impacts on USDT.

Tether is disappointed.

Tether has expressed disappointment over the delisting of USDT by exchanges in Europe following the implementation of MiCA, describing it as “rushed actions.” Criticizing the actions, a Tether spokesperson said, “It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves.”

Tether warned that the regulatory changes in the EU could destabilize the European crypto market and pose risks for consumers. The USDT issuer stated the changes would not only affect USDT, but many tokens in the EU market.

Despite Tether’s criticism of MiCA’s impact on EU-licensed stablecoins, the issuer acknowledged the role of European regulators in establishing a structured framework. Tether’s spokesperson noted, “As we have consistently expressed, some aspects of MiCA make the operation of EU-licensed stablecoins more complex and potentially introduce new risks.”

Tether also stated its commitment to regulatory compliance: “As Tether finalizes its European strategy for USDT, it remains committed to ensuring compliance with evolving regulations while introducing groundbreaking technologies such as Hadron and investments in transformative projects such as Quantor, designed to be MiCA compliant.”

Before Crypto.com, two other major exchanges, OKX and Coinbase, already delisted USDT in 2024. Tether is yet to disclose its reasons for not complying with MiCA stablecoins requirements. However, Tether pledged to create MiCA-compliant solutions, and also announced to discontinue its euro-pegged stablecoin, EURT, by 27 November 2025.

Read also:  MiCA: OKX delists Tether (USDT) trading pairs for Users in Europe. What next? Coinbase delists multiple stablecoins in EU markets      

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com