Crypto.com to Delist USDT for EU Users on Jan 31st

Crypto.com has announced its decision to delist Tether’s USDT and nine other tokens for European Union (EU) users starting January 31, 2025.

The change aligns with compliance under the EU’s Markets in Crypto-Assets (MiCA) regulations, giving users until March 15 to convert their assets.

Regulatory Pressure as Crypto.com Complies with MiCA

Tether (USDT), the world’s largest stablecoin by market capitalization, has faced increasing scrutiny in the EU since audits in October 2024 revealed an 82% asset-backing ratio, raising questions about transparency and regulation.

Crypto.com’s delisting decision mirrors similar steps taken by Kraken and Binance’s EU divisions last December. The growing regulatory pressure has pushed exchanges to rethink their listings to ensure compliance.

The news was met with mixed reactions. One user, @AjaxBTC, commented, “Okay… so what will these users do? Will they just flip their USDT to RLUSD or USDC, or is the planning completely something else?”

Meanwhile, @sasicula questioned the strategy, asking, “Is this a good move?” These sentiments highlight the uncertainty surrounding the delisting and the need for users to act swiftly before the March 15 deadline.

Historical Precedents 

Cybertecwiz reported a similar development on October 23, when Binance announced the removal of four tokens—IDRT, KP3R, OOKI, and UNFI—effective November 6. That decision shocked traders, leading to double-digit losses in the altcoin market.

Furthermore, such delistings underline the increasing influence of regulatory frameworks like MiCA, which aim to bring order and transparency to the crypto market but also create turbulence for exchanges and investors alike.

Crypto.com’s delisting sets the stage for potential shifts in EU users’ stablecoin preferences. Tether holders might choose alternatives such as RLUSD or USDC, which better comply with regional regulations. However, as @ApateAI noted, this delisting follows similar actions by Kraken and Binance EU, indicating that regulators are scrutinizing more than just USDt.

As regulatory measures tighten across the crypto industry, exchanges, and users must adapt to the evolving landscape. Crypto.com’s USDT delisting reflects a broader trend of compliance-driven decisions that may reshape the stablecoin market in Europe.