Tether criticizes EU’s MiCA as Crypto.com delists USDt

Published 30/01/2025, 16:12
Tether criticizes EU’s MiCA as Crypto.com delists USDt

Tether, the company behind the widely-used USDt stablecoin, voiced its concerns over the recent market developments in Europe. This statement comes as cryptocurrency exchanges like Crypto.com begin to delist USDt in response to the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.

Crypto.com confirmed on January 29 that it would remove Tether’s USDt and nine other tokens from its platform on January 31 to adhere to the new regulations.

Tether’s spokesperson conveyed disappointment with the hurried decisions made by exchanges in Europe, which have been influenced by the MiCA framework. in a sttament to CoinTelegraph, the representative criticized the lack of clarity in the statements that prompted such actions, suggesting that these moves could have been better informed.

The stablecoin operator warned that the MiCA-triggered changes could lead to significant risks for EU consumers and the local crypto market. According to Tether, the delisting of multiple tokens, including USDt, could place additional risk on EU consumers and potentially result in a "disorderly" market, especially given that MiCA is still in the early stages of being implemented.

Other exchanges have also taken steps to comply with MiCA, with Coinbase (NASDAQ:COIN) delisting six tokens in December 2024 and an additional two by January 30. Coinbase delisted Wrapped Bitcoin (WBTC) on its entire platform for reasons unrelated to MiCA on December 19, 2024. The exchange has expressed its commitment to reassessing and potentially re-enabling services for stablecoins that achieve MiCA compliance at a later date.

Despite the challenges posed by MiCA, Tether is finalizing its strategy for USDt in Europe. The company acknowledged that while some aspects of MiCA complicate the operation of EU-licensed stablecoins, it remains committed to ensuring compliance with evolving regulations. Tether is also focused on introducing new technologies and investing in projects designed to be MiCA compliant.

The European Securities and Markets Authority has urged crypto asset service providers to start restricting non-MiCA-compliant stablecoins by the end of January, with a complete restriction to be in place by the end of the first quarter of 2025. However, these tokens can still be listed in sell mode until March 31.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.