Crypto.com recently announced that it will delist Tether’s stablecoin USDT ($1.00) on January 31 to comply with the Markets in Crypto-Assets Regulations (MiCA). The exchange also revealed that it will delist nine other tokens, including Crypto.com Staked ETH ($3,132.73), Crypto.com Staked SOL ($231.62), DAI ($1.00), PAX Dollar, PAX Gold, PayPal USD, XSGD ($0.52), and Wrapped Bitcoin.
Crypto.com continued that it will disable deposits for the affected tokens after delisting. However, withdrawals will remain open until the end of the first quarter of this year. The centralized exchange joins Coinbase as one of the first crypto service providers in the European Union to delist USDT.
The exchange’s spokesperson confirmed holders of the delisted coins will have until March 31 to convert their assets to MiCA-compliant alternatives. The spokesperson also warned that the exchange will automatically convert assets to MiCA-approved stablecoins or assets for users who fail to convert their assets by the given deadline.
The decision comes after the European Securities and Markets Authority (ESMA) urged exchanges to drop non-compliant tokens. ESMA released a public statement on January 17 mentioning the need for crypto asset service providers (CASPs) to align their services in compliance with the MiCA regulations.
The authority, which is one of the major watchdogs overseeing the implementation of the MiCA framework, encouraged National Competent Authorities (NCAs) to provide guidance to exchanges and other CASPs. ESMA explained that NCAs will ensure consistency and orderliness during the legislation’s implementation throughout the region.
USDT loses market share amid regulatory uncertainty
USDT has lost ground since last year due to the regulatory uncertainty in the EU. The stablecoin, which held at above $150 billion last year has shed several billion dollars since MiCA’s implementation. Its market cap stands at a little over $139 billion.
The stablecoin company had previously expressed concern about the systemic risk MiCA regulations would cause huge stablecoin companies like Tether. According to the company’s CEO, Paolo Ardoino, the new regulations demanding 60% of stablecoin reserves in the EU to be in Euros places stablecoin users at risk.
Ardoino also highlighted the risks of a 100,000 Euro insurance limit for cash deposits, which puts larger companies at risk. The Tether CEO also suggested that the lack of full insurance coverage could lead to stablecoins depegging in case of major financial risks. Ardoino speculated that the MiCA regulations could not protect users in that case.
Tether has also experienced significant changes since the introduction of MiCA regulations, including its general counsel leaving after the stablecoin’s regulatory uncertainty in the EU. Michael Hilliard succeeded Hoegner, the exchange’s former general counsel who was with the company since 2014 until his retirement.
Crypto.com receives its full MiCA license
🇪🇺 https://t.co/vCNztATSCO is extremely proud to be the first major global crypto asset service provider to receive in-principle approval of its MiCA Licence 🇪🇺
The licence will enable the company to passport services across the EU under the new MiCA regulatory framework.
The… pic.twitter.com/JMWEmGSzb3
— Crypto.com (@cryptocom) January 17, 2025
The exchange recently received a MiCA license courtesy of the Malta Financial Services Authority (MFSA). The exchange claimed to be the first crypto asset service provider to receive a full MiCA license, which allows it to provide crypto services for users across the entire EU region.
The licensing came a few weeks after the exchange received an in-principle MiCA license. Crypto.com reiterated its support for the EU crypto regulatory framework and confirmed that MiCA regulations will provide regulatory transparency and clarity and build confidence in the crypto sector.
The exchange’s president and COO, Eric Anziani, established the exchange’s commitment to expanding in the EU as a growing crypto hub. The Crypto.com executive commended the EU’s efforts to design and implement a comprehensive framework to streamline crypto service across the region.
Anziani mentioned that the exchange looked forward to working with the union to provide European clientele with compliant services under the direction of the MiCA regulatory framework. The COO further highlighted that the company had focused on acquiring the MiCA license over the past few years.
“Securing a MiCA licence has been a major priority for us in recent years, and receiving this approval further cements our continued commitment to being the most compliant and regulated crypto platform globally.”
~ Eric Anziani, Crypto.com’s President and COO
The MiCA license is one of the many licenses the exchange has accrued over the past few years, including Dubai’s Virtual Assets Service Provider license (VASP), Australian Financial Services License, U.S. Designated Contracts Market (DCM), Singapore’s Major Payment Institution license (MAS ($0.00)), and UK’s Electronic Money Institution license (FCA).
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