Tether Fails to Comply with MiCA

MiCA and the Future of Stablecoins in the EU

The European Union's Markets in Crypto-Assets (MiCA) regulation, which came into effect on December 30, 2024, has introduced a strict regulatory framework for stablecoins and other digital assets. MiCA requires stablecoin issuers to obtain authorization and comply with reserve, governance, and operational requirements to legally operate within the EU.

Tether’s Compliance Issues

Despite being the world’s largest stablecoin, Tether’s USDT has not met MiCA’s regulatory requirements. As a result, major crypto exchanges have started to delist USDT for European users.

Exchanges Take Action

• Crypto.com announced the delisting of USDT and nine other tokens for European users by January 31, 2025, in response to MiCA regulations.
• Coinbase followed suit, removing USDT in December 2024, citing the need to comply with MiCA's stricter stablecoin policies.
• Users holding USDT and other non-compliant tokens have until March 31, 2025, to convert them into MiCA-compliant assets or risk their holdings being automatically swapped for approved stablecoins.

Tether Pushes Back Against EU Regulations

Tether has criticized these actions, calling them “rushed” and “unclear”, warning that sudden delistings could create market instability and put European consumers at risk. Despite these concerns, EU regulators have not explicitly confirmed whether USDT is non-compliant, adding uncertainty to the situation.

What’s Next for Tether and MiCA?

The lack of regulatory clarity has left exchanges divided—some have proactively removed USDT, while others await further guidance. As MiCA reshapes Europe’s crypto market, Tether will have to decide whether to adapt to new EU laws or shift focus to less regulated regions.

The coming months will be critical in determining whether USDT can remain a part of the European crypto landscape or if investors will need to turn to other stablecoin alternatives.

‍