Crypto.com to Delist Tether (USDT) and Nine Other Tokens in Europe

Crypto.com has announced it will delist Tether (USDT) and nine other tokens in Europe starting January 29, 2025. This decision comes as part of the exchange’s efforts to comply with the European Union’s Markets in Crypto-Assets (MiCA) Regulation, which aims to standardize cryptocurrency regulations across the region.

Which Tokens Are Being Delisted?

The following tokens will no longer be available for trading and purchases in Europe on Crypto.com:

• Tether (USDT)
• 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)
• XSGD (XSGD)

This delisting mainly affects stablecoins and staking tokens, signaling a shift towards MiCA-compliant assets.

Why Is Crypto.com Delisting These Tokens?

Crypto.com’s move aligns with the MiCA regulations, which set stricter rules on cryptocurrency services and stablecoins within the European Union. The European Securities and Markets Authority (ESMA) has instructed exchanges to ensure compliance by January 31, 2025.

Key reasons for the delisting:

MiCA Compliance – Non-compliant stablecoins must be phased out or registered under new regulatory frameworks.
Regulatory Clarity – MiCA aims to provide clear guidelines for crypto firms operating in the EU.
Market Oversight – Stricter regulations help prevent financial risks associated with stablecoins.

What Happens to Affected Users?

• Trading Suspension – Starting January 31, 2025, users in Europe will no longer be able to purchase the delisted tokens.
• Withdrawal Window – Users can withdraw affected tokens until March 31, 2025.
• Automatic Conversion – After March 31, any remaining delisted tokens will be converted into MiCA-compliant assets or equivalent market-value assets.

Crypto.com urges users to transfer or convert their holdings before the deadline to avoid automatic conversions.

How Does This Affect the Crypto Market?

The removal of USDT, the world’s largest stablecoin, from the European market is expected to have significant consequences.

Liquidity Impact – USDT plays a crucial role in crypto trading pairs. Its removal could lead to increased trading costs and reduced liquidity.
Shift to USDC? – Investors might migrate towards USD Coin (USDC), which is already MiCA-compliant.
Market Reactions – The crypto community has mixed responses, with some viewing this as necessary for regulation, while others worry about short-term disruptions.

How Will This Affect Other Exchanges?

Crypto.com’s delisting is likely the first of many similar moves across European exchanges. Other crypto platforms may follow suit by restricting non-compliant stablecoins before the MiCA deadline.

• Binance & Coinbase may also adjust their offerings to ensure compliance.
• More EU Regulatory Changes could reshape how stablecoins operate in Europe.

Final Thoughts

Crypto.com’s decision to delist USDT and nine other tokens marks a major shift for the European crypto market. While this move aligns with MiCA regulations, it could also reshape stablecoin dominance, with USDC and other compliant assets gaining traction.

What’s your take on Crypto.com’s delisting? Will it help or hurt the crypto market in Europe? Let us know in the comments!