Crypto.com will delete Tether’s USDT Stablecoin by January 31 as part of the efforts to meet the European markets in the regulation of crypto-assets (MICA), according to e-mails obtained by CryptoSlate.
The exchange will also remove nine other tokens, including wrapped Bitcoin (WBTC), DAI, Pax Dollar (USDP), PayPal USD (Pyusd), Crypto.com’s Stant -eth (Steth), StaLed Sol (Stsol), Liquid Cronos (LCRO ) (LCRO) (LCRO) and XSGD.
After the deadline of 31 January, users have until 31 March to withdraw these assets. Crypto.com stated that all remaining tokens would be automatically converted after this date into an Mica-compliant Stablecoin or another active market value.
Mica and USDT
Mica introduces strict regulatory standards for crypto companies that are active within the European Economic Area (EEA).
The Regulation maintains strict reserve requirements for stablecoins and ensures greater financial transparency and protection of consumers. This requirement has taken up considerable challenges for USDT, the largest stablecoin through market capitalization.
Tether’s CEO Paolo Ardoinino warned that these requirements could cause systemic risks for both the banking sector and digital assets.
Despite these obstacles, Tether actively invests in projects that match the European regulations. The company has supported Quantoz and Stablr that focuses on euro-based stablecoins that are designed for full compliance with the regulations.
Crypto.com’s Mica Licenses
The decision of crypto.com to delete USDT follows his recent approval under Mica.
On January 27, the company announced that the complete approval of the regulatory authorities had obtained the Malta Financial Services Authority (MFSA), making it one of the first crypto grants that were authorized to operate the honor under the new framework.
With this approval, Crypto.com can offer regulated crypto services throughout Europe, which ensures greater transparency and legal security for its users.
The relocation also reinforces the dedication of the exchange to work within a structured regulatory environment, because the region tightens the supervision of digital assets.