The European Union intensifies its control over stablecoins not in accordance with its new regulations. Crypto.com has just announced the abolition of Tether (USDT) and nine other cryptos in Europe, a decision that constitutes a turn for the sector. Such an initiative directly meets the requirements of the MICA (Markets in Crypto-Astets Regulation) regulations, which requires strict supervision of stablecoins and associated services. After Coinbase, which withdrew the USDT in October 2024, Crypto.com follows the movement and imposes a precise calendar on its users. As of January 31, 2025, the purchase and filing of these assets will be prohibited on its European platform. From March 31, the remaining funds will be automatically converted into stable -co -compliance with Mica. This withdrawal exceeds the simple compliance. It redraws the landscape of stablecoins in Europe, where exchange platforms must now adapt to new rules or risk sanctions. In a changing market, this announcement underlines the will of regulators to impose a strict framework, and leaves uncertainties on the future of decentralized stablecoins in the EU.
Crypto.com applies Mica regulations: a programmed ending for the USDT
From January 31, 2025, Crypto.com will block the purchase and deposit of the USDT as well as nine other cryptos on its European platforms. Users will always be able to withdraw their funds until the end of the first quarter of 2025. After March 31, the remaining assets will be automatically converted into Stablecoin compliant with Mica, which thus guarantees a transition to regulated assets.
Indeed, The USDT is not the only token concerned. Other cryptos withdrawn, we find Wrapped Bitcoin (WBTC), DAI (DAI), Pax Dollar (Pax), Pax Gold (Paxg) and Paypal USD (Pyusd). Some specific tokens at Crypto.com, such as crypto.com Staked ETH (CDCETH) and Crypto.com Staked Sol (CDCSOL), are also assigned. Thus, this decision is part of the European regulatory strengthening, after the publication of a press release from the European Financial Markets Authority (ESMA), on January 17, 2025. This document called all the exchange platforms to be removed The non -compliant stablecoins before the deadline of March 31.
By applying these new restrictions, Crypto.com is positioned as one of the first players to fully comply with the Mica frame, a trend that should extend to other platforms that operate in Europe.
A European market in transition: what future for Stablecoins?
The withdrawal of the USDT in Europe goes beyond Crypto.com. Since the entry into force in the MICA regulation on December 30, 2024, several exchange platforms have started a restructuring of their offers in order to avoid any conflict with regulators. Coinbase had already taken this stage in October 2024, by the withdrawal of Tether from his platform and the proposal for an automatic conversion to USD Coin (USDC), a stablecoin deemed in accordance with the requirements of the European Union.
The aim of such a regulatory transition aims to strengthen the transparency and market stability, but it also creates concerns about the concentration of power between a few approved issuers. To date, the USDT remains the undisputed leader in Stablecoins, with a capitalization of $ 139 billion, against 52 billion for the USDC. However, the European regulatory environment becomes more and more hostile to Tether, which could promote the USDC and offer it increased adoption on the Old Continent.
The compliance with Mica redefines the landscape of Stablecoins in Europe, which encourages the actors to turn to regulated alternatives. This development questions the future of decentralized stables and the impact of these new rules on innovation in the cryptos sector. If the EU seeks to secure its market, the consequences on the competitiveness and diversity of the crypto ecosystem remain uncertain.
The gradual application of Mica deeply transforms the European crypto ecosystem. For some, this regulation strengthens investor protection and provides better transparency to the market. But, for others, it limits the diversity of stablecoins and promotes actors already established to the detriment of decentralized alternatives. With the gradual disappearance of the USDT, 2025 may well mark a strategic turn, where only compliant stablecoins will continue to exist on European soil. It remains to be seen whether this regulation will really promote financial stability or if it will slow down the innovation and competitiveness of the Crypto market in the long term.
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