The European crypto market is undergoing a significant transformation with the full implementation of the Markets in Crypto-Assets (MiCA) Regulation. 

Among the first major exchanges to take action is Crypto.com. In an announcement, the exchange revealed the delisting of Tether’s USDT and nine other tokens in compliance with MiCA’s strict framework.

USDT and Nine Other Tokens to Be Delisted

Crypto.com confirmed the list of affected tokens in an email notice sent to European users on January 28. Alongside USDT, Crypto.com is also delisting several other non-compliant cryptocurrencies. 

These include Wrapped Bitcoin, Dai, Pax Dollar, Pax Gold, PayPal USD, Crypto.com Staked Ethereum (ETH), Crypto.com Staked Solana (SOL), Liquid CRO, and XSGD.

Starting January 31, Crypto.com will suspend purchases of non-compliant assets, with full delisting by March 31. Users must convert them by Q1 2025 or face automatic swaps into approved assets.

The MiCA Impact: Tether Under Fire in Europe

The European Securities and Markets Authority (ESMA) has taken a hard stance on non-MiCA-compliant stablecoins. 

The regulatory agency is pushing Crypto Asset Service Providers (CASPs) to remove non-MiCA-compliant stablecoins from their platforms by January 31, 2025. 

The move follows Coinbase’s earlier decision in 2024 to delist USDT in the European Union (EU). This decision set the precedent for broader regulatory enforcement.

Juan Ignacio Ibañez, a MiCA Crypto Alliance’s Technical Committee member, confirmed that the ESMA’s stance is clear. He emphasized that by March 31, there should be “no trace of USDT,” not even in “sell-only” mode.

Tether’s USDT, the world’s largest stablecoin with a $139 billion market cap, is being removed in Europe. Meanwhile, its biggest competitor, Circle’s USD Coin (USDC), is gaining traction.

USDC was officially approved as a MiCA-compliant stablecoin in July 2024 and has since been widely adopted by exchanges and financial institutions within the EU. 

Following Coinbase’s USDT delisting, the exchange facilitated a smooth conversion of USDT into USDC, a practice other CASPs may soon follow.

The Future of Crypto Trading in the EU

Since the full enforcement of MiCA on December 30, 2024, the European crypto landscape has shifted rapidly. 

While some platforms have already secured regulatory approval, Crypto.com is currently working on obtaining its MiCA license in Malta. 

Several crypto exchanges are also pursuing MiCA licensing to maintain operations in Europe. Some crypto firms have asked EU regulators for more time to adjust to the new MiCA rules, saying they are struggling to comply.

The coming months will be crucial as more CASPs adapt to MiCA or exit the EU market. The USDT delisting shifts toward stricter regulations, focusing on transparency and investor protection.

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