With the implementation of the MICA framework last year, important changes in the Stablecoins and cryptocurrency market are found. After securing your mica license Only two weeks ago, Crypto.com will soon become the second great exchange after coinbase to eliminate Tether’s USDT from its EU platform.
Tether still does not have his mica license due to his lack of transparency with respect to his reservations, something for which they have faced criticism in the past.
January 31, 2025 is the deadline for the exchange to eliminate the USDT of its platform.
The imminent elimination of the layer is derived from the inability of the USDT to meet the strict mica compliance requirements. The exchange will also suspend the purchases of another 9 tokens.
Another, this time @Cryptocom enlisted USDT, $ WBTC and others in Europe@justinsuntron @Paoloardoino PLS fixed pic.twitter.com/csjgm6ax2h
– Wazz (@WazzCrypto) January 28, 2025
The other 9 tokens apart from the USDT are Bitcoin (WBTC), DAI (DAI), Pax Dollar (PAX), PAX GOLD (PAXG), PAYPAL USD (PYUSD), Crypto.com Eth (CDCETH), Crypto.com. Sol states (CDCSOL), liquid cro (LCRO) and XSGD (XSGD).
A representative of Crypto.com said: “Users who have these tokens will have until the end of the first quarter, on March 31, to turn them into assets that meet Mica, otherwise they will automatically become a stable or active compatible with The corresponding market value. “
However, investors can still withdraw the affected token until the first quarter of 2025. The complete elimination of these tokens must enter into force on March 31, 2025.
Mica has established strict standards for stables to protect investors, maintain financial stability and transparency. One of the key requirements is that Stablecoins shows his reservations. Stablecoin issuers must maintain their reservations at acceptable levels and must regularly submit to audits to demonstrate that their assets remain stable.
Explore: The stable that meet the Mica dominate the European market. Btc-Eur trade pair blooms!
USDT eliminates the impact and challenges
If Stablecoin emitters want to operate in the EU, now they only have two options. They can comply with mica or risk losing in the European market. Tether has so far resisted compliance. The company considers to convert its participation in US bonds.
However, the company has its reasons. Tether faced operational paralysis in 2018 when their funds froze due to legal problems that involve one of their banking partners. The USDT faced a similar problem in 2023 when its guarantee froze after the collapse of an American bank.
The elimination of the USDT of European exchanges could lead to complications. As a widely used stable in the cryptographic market, its exclusion could lead to reduced liquidity. The reduced liquidity of the USDT could lead to lower commercial volumes and prices volatility for other cryptocurrencies.
Investors can face some difficulties for a time in coverage against market volatility. As investors resort to alternative stable, there is a risk of market fragmentation and inefficiencies in cross -border transactions.
However, many exchanges are fighting this problem by establishing an EU base to meet Mica’s requirements. Gemini, for example, recently established its headquarters in Malta as a center for its mica frame.
Explore: ESMA establishes the deadline of January to align with the rules of Mica Stablecoin, Tether’s USDT can be affected
The USDT of the publication to be eliminated on Crypto.com, nine other tokens at risk appeared first in 99Bitcoins.
