Tether expressed its dissatisfaction with European regulatory changes as exchanges started removing USDT due to MiCA implementation. The new regulations have pushed Crypto.com, along with other global exchanges, to remove Tether’s stablecoin (USDT) from their platforms. The spokesperson from Tether criticized the move without evident reasons.
On Jan 29, Crypto.com announced that it would remove USDT and nine other digital assets from its European platform on Jan 31. Besides USDT, other delisted tokens include Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), Crypto.com Staked ETH (CDCETH), Crypto.com Staked SOL (CDCSOL), Liquid CRO (LCRO), XSGD. These removals were due to compliance with MiCA regulations, as per the exchange.
Tether warns of MiCA risks for EU consumers and market
According to Tether, EU Consumers and Market Stability at Risk Changes brought about by MiCA could put the European Union market in grave danger. The firm believes that delisting multiple tokens, is creating additional risks for consumers and potentially doing harm to the local crypto ecosystem, hence the report claims the firm was apparently ‘spooked’ by the thinking.
These regulatory changes impact numerous digital assets in the EU, not just USDt. We fear such actions will create additional risks for European consumers.
According to Tether, the regulatory transition is still in its early stages, and delistings could leave the exchange in an uncertain trading environment. The company stated that USDT is highly popular in emerging markets, while the Euro stablecoin market remains small.
Coinbase removed Wrapped Bitcoin (WBTC), and delisted USDT through the Regulations, in Dec 2024. Additionally, Tether representative said that MiCA had not made enough progress in enabling the crypto borrower to keep their money stable in stable coins.
