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Crypto.com Set to Remove USDT, Other Tokens in MiCA Compliance Push

In a major shakeup, Crypto.com is set to delist USDT and other tokens deemed non-compliant with the EU's MiCA framework. The move marks a turning point as major exchanges adapt to strict new regulations. What will the European crypto market look like after March 31st?

The crypto world is bracing for a seismic shift as major exchange Crypto.com announces plans to remove Tether’s USDT stablecoin and other tokens deemed non-compliant with the European Union’s newly enacted Markets in Crypto-Assets (MiCA) regulation. The move, set to take effect on March 31, 2025, marks a turning point as digital asset platforms scramble to align with the stringent new framework governing the industry across the EU.

Crypto.com’s MiCA Compliance Push

In a bid to conform to MiCA’s rigorous standards, Crypto.com will delist a total of 10 digital assets, with USDT being the most notable casualty. Users holding these tokens will have until the end of March 2025 to convert their balances into MiCA-compliant stablecoins or equivalent market value assets. Failure to do so will result in automatic conversion by the exchange.

Users holding these tokens will have until March 31 to convert them into MiCA-compliant assets. Otherwise, they will be automatically converted into a compliant stablecoin or corresponding market value asset.

– Crypto.com Announcement

The MiCA Regulation Debate

MiCA, adopted by the EU to safeguard consumers and combat money laundering, imposes strict compliance criteria that many digital assets have yet to meet. The case of Tether’s USDT, the largest stablecoin by market cap at $139 billion, underscores the challenges faced by issuers. In contrast, Circle’s USD Coin (USDC) secured EU approval in July 2024 and appears poised to gain market share in the wake of USDT’s delisting.

  • MiCA aims to protect consumers and prevent money laundering
  • Many digital assets do not yet meet MiCA’s strict compliance criteria
  • USDC appears set to benefit from USDT’s removal on EU exchanges

Exchanges Adapt to the New Reality

Crypto.com’s move is part of a broader trend of exchanges striving to comply with the EU’s new regulatory landscape. Coinbase had already delisted USDT in October 2024, with other European platforms following suit. For users, adapting to this new reality will require timely conversion of non-compliant tokens before the prescribed deadlines.

Users must convert non-MiCA compliant tokens like USDT before March 31, 2025 to avoid automatic conversion by exchanges.

The Future of Crypto in Europe

The implementation of MiCA heralds a new era for the cryptocurrency industry in Europe. While the regulation aims to bolster security and transparency, it also presents significant challenges for sector participants. The delisting of USDT and other tokens by Crypto.com is likely just the beginning of a series of adjustments that could reshape the European crypto ecosystem.

Key Takeaways

  • Crypto.com will remove USDT and non-MiCA compliant tokens by March 31, 2025
  • Users must convert affected tokens before the deadline to avoid automatic conversion
  • MiCA regulation aims to protect consumers but poses challenges for the industry
  • The delisting marks the start of a potential reshaping of Europe’s crypto landscape

As the March 31st deadline looms, all eyes will be on how the European crypto market adapts and evolves in response to the new regulatory reality ushered in by MiCA. Crypto.com’s decisive action may set a precedent for other major players, accelerating the shift towards a more compliant and perhaps more consolidated digital asset ecosystem in the EU.

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