Crypto.com, a leading crypto exchange, announced it is suspending Tether USDT and Paypal’s PYUSD from its platform following MiCA law on digital assets.
The suspension of the stablecoins takes effect on January 31st with other digital assets like Crypto.com Staked ETH and Crypto.com Staked SOL.
The crypto exchange platform deemed the digital assets unauthorized according to MiCA laws that took effect on the 1st of January 2025.
Crypto Exchanges in Europe are required to follow the European Union’s rules for crypto assets embodied in a regulatory framework known as MiCA.
This framework requires stablecoin issuers and staking service providers to have the necessary authorization in order to be accessed by Europeans.
The new MiCA laws apply to the 30 nations in the European Economic Area.
Regulators in the EU notified exchanges in Europe to stop issuing unauthorized stablecoins to Europeans and to vet stablecoin issuers on their platform within the next 2 months.
Tether, the largest stablecoin issuer by market share, would be affected by the new Mica laws, likewise Paypal’s PYUSD and Pax Dollar.
Tether vs MICA Feud drags on
The Standoff between Tether and MiCA over authorization and the license to operate in Europe continues following the announcement by Crypto.com.
Paolo Ardoino, CEO of Tether, has addressed concerns regarding the European Union’s Markets in Crypto-Assets (MiCA) regulations and their potential impact on Tether’s operations.
He has criticized certain provisions of MiCA, particularly the requirement for significant stablecoin issuers to maintain 60% of their reserves in cash stored in EU banks, expressing concerns about the associated risks due to potential bank failures.
Early January, Ardoino dismissed rumors about USDT being delisted from European exchanges as a “poorly coordinated effort” by competitors and critics, emphasizing Tether’s commitment to regulatory compliance and the security of its reserves.
Crypto.com is the first major exchange to announce its planned suspension of Tether and other stablecoins.
As of the time of this report, Tether’s market cap is over $95 billion, making it the third-largest cryptocurrency after Bitcoin (BTC) and Ethereum (ETH).
The digital asset has a trading volume exceeding $100 billion and controls the largest share of the global stablecoin market.
