According to emails shared with European users, Crypto.com will delist several prominent cryptocurrencies, including Tether’s USDT, Wrapped Bitcoin (WBTC), and DAI, by January 31, 2025.
This action is part of the exchange’s strategy to comply with the Markets in Crypto-Assets (MiCA) regulation, which has ushered in a new era of regulatory oversight for digital assets within the European Economic Area (EEA).
MiCA’s influence on crypto markets
The MiCA regulation imposes strict standards on crypto businesses, particularly concerning the transparency of stablecoin reserves and consumer protection.
These rules directly challenge the operational models of several stablecoins, including USDT, which is the largest by market cap.
Tether’s CEO, Paolo Ardoino, has voiced concerns about the systemic risks that the MiCA regulations might pose, not only to digital assets but also to traditional banking sectors.
As the MiCA regulations came into effect, Tether suspended its euro-pegged stablecoin, EURT, which at the time had a market cap of $27 million.
Nevertheless, Tether in December 2024 announced its investment in Malta-based stablecoin firm StablR, which operates two stablecoins: StablR Euro (EURR), pegged to the euro, and StablR USD (USDR), pegged to the US dollar.
Under the agreement, StablR would use Tether’s tokenization platform, Hadron, which allows for the tokenization of various assets, including stablecoins.
Crypto.com’s push to become MiCA compliant
Crypto.com’s decision to delist these tokens comes right after it secured a significant regulatory milestone by obtaining full MiCA approval from the Malta Financial Services Authority (MFSA) on January 27, 2025.
We’re proud to announce that today we’ve received full approval of our MiCA license.
This approval marks Crypto.com as one of the first exchanges authorized to offer regulated crypto services throughout the EEA under the new regulatory framework.
The move not only ensures compliance but also reinforces the exchange’s commitment to operating within a structured regulatory environment amidst tightening digital asset oversight in Europe.
Impact on users and market dynamics
European users of Crypto.com have been given until March 31, 2025, to manage or withdraw their holdings in the delisted tokens.
Post this date, any remaining assets will be automatically converted into MiCA-compliant alternatives, emphasizing the urgency for users to adapt to the new regulatory environment.
This deadline is intended to facilitate a smooth transition for users who might not be immediately aware of or prepared for these changes.
The delisting of these assets, especially USDT, which has a substantial market cap of around $138 billion, could significantly influence market dynamics in Europe.
Following Coinbase’s similar action last year, Crypto.com’s move signals a trend where major exchanges are aligning their offerings with regulatory expectations, potentially reshaping the stablecoin market in the region.
The absence of these tokens in the European market could bolster the position of already compliant or soon-to-be compliant stablecoins like USDC, which was greenlighted under MiCA in July 2024.
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