Crypto.com has announced that it will set up the USDT of Tother and nine other tokens in Europe by January 31, 2025, to comply with the markets of the European Union in the regulation of crypto-sets (Mica) .
Crypto.com has announced that it will set up the USDT of Tother and nine other tokens in Europe by January 31, 2025, to comply with the markets of the European Union in the regulation of crypto-sets (Mica) . The radiated tokens include wrapped bitcoin (WBTC), DAI (DAI), PAX Dollar (Pax), Pax Gold (Paxg), Paypal USD (Pyusd), Crypto.com ETH (CDCETH), Crypto.com Staked Sol (CDCSOL) , Liquid (lcro) and xsgd CRO. A crypto.com spokesman confirmed that the purchases of these tokens will be suspended on January 31 and that the deposits will also be disabled shortly after. However, withdrawals will remain available until the end of the first quarter of 2025, and the full radiation should occur by March 31, 2025.
Users who hold these tokens will have until March 31 to convert them into assets in accordance with mica. If they do not convert on this date, their assets will be automatically exchanged for a compliant stablecoin or an equivalent market value. The cancellation follows the complete application by the EU of the Mica regulations at the end of 2024. The European Securities and Markets Authority (ESMA) urged the providers of cryptographic assets (CASPS) to comply on January 31, restricting Stablescoins not in accordance with mica. The USDT, the largest stablecoin by market capitalization, is one of the tokens affected by these regulations.
Mica requires that stablecoins operating in the European Economic Area (EEE) must have an electronic currency license of at least one member state of the EU. The USDT, which has a market capitalization of $ 139 billion, has not such a license and Tether has not received an authorization under Mica. This led to a meticulous examination of the USDT in the region. The demarcation of the USDT of exchanges like Crypto.com follows similar movements by other platforms, including Coinbase, which radiated the USDT in December 2024 due to its non-compliance. After Coinbase’s decision, users had the possibility of converting their USDT into options that comply with Mica as USD Coin (USDC).
Alongside the USDT, Crypto.com has also set up several other tokens, including Bitcoin wrapped (WBTC), DAI (DAI), PAX Dollar (PAX) and several other stablecoins and active. This is part of a wider effort by crypto.com to secure Mica compliance, which also includes obtaining a license in Malta. The implementation of Mica sparked a race among the exchanges in the EU to ensure that they comply with regulatory standards. Other exchanges, including Gemini, have also established operations in Malta to comply with the regulations.
While mica regulations continue to reshape the cryptographic landscape in Europe, only the stablecoins that meet Mica standards, like the USDC, probably prosper. USDT challenges to comply with new regulations could make it difficult for the token to maintain its position on the European market.
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