News and analysis on encrypted currencies, Blockchain and decentralized financing

Yesterday, Crypto.com sent an official call to all its users residing in the European Union countries declaring the omitt and other symbols.

The decision is linked to the regulation of the new European encryption, MICA, and the fact that the source of USDT, Tether has not been recognized by the European Union as an electronic source.

Communication from Crypto.com to delete USDT in Europe

The Stock Exchange states that starting tomorrow, Friday, January 31, 2025, some services will be boycotted on the platform for residents of the European Union.

Do not specify exactly services, except for the ETH and Sol, but they are the symbols that will be interrupted.

Such symbols are: Usdt, Dai, Pyusd (Paypal usd), PAX (Pax Dollar), Paxg (Pax Gold), WBTC (wrapped Bitcoin), LCRO (liquid CRO) and XsGD.

However, the connection indicates the purchases of these symbols, without saying anything about selling or withdrawing.

New UE List

Mika officially entered last year. However, there is still a certain period of time to align.

accident Official communication From ESMA (Securities and European Markets Authority) already states that services related to unauthorized symbols will be suspended in the European Union starting from January 31, while there should be time until March 31 to sell or withdraw them.

former Official communication From Esma stated that there was time until July 2026.

Therefore, there is no clarity in this matter. What is known is that Crypto.com He decided to follow the instructions shown in the latest connections from ESMA.

The result is that starting from January 31, 2025, in the exchange of Crypto.com, it will not be possible to buy distinctive symbols like USDTPerhaps it will not even be possible to exchange them with other encrypted currencies. However, it should still be sold, for example in dollars, euros, or other approved and withdrawn stablecoins.

Usdt (rope)

The main point, as stated in the latest connections from ESMA, is that the new European encryption organization prohibits central exchanges of providing services that involve the asset reference symbols

(Art) and the electronic money code (EMT) is incompatible.

This art is the distinctive symbols in other origins, such as Paxg and Dai, while EMT is a guarantee stableoins guarantee and convertible into Fiat currencies, such as USDT.

The fact is that in the MICA compatible EMT category, the source of the distinctive symbol must be recognized by the European Union as an E-Money. Tether, which is issued Usdt, is not, and therefore USDT cannot be considered in the European Union compatible with EMT.

The same applies to art, and since Dai is released and managed through decentralized smart contracts, there is no single issue or management that can request appreciation from the European Union.

All this explains why the European Union’s residents are not allowed to use Stablecoins such as USDT or Dai in central encryption exchange. However, it remains used on the non -guardian and DEXS (decentralized exchanges).

What do you do with the USDT on Crypto.com

First of all, it must now be said that Crypto.com is the only well -known stock exchange that has announced the suspension of USDT services in the European Union. However, in recent months, other exchanges have suspended some services.

Moreover, in order to sell or withdraw USDT and Dai and other unauthorized symbols in the European Union, there should be time until March 31.

Finally, these restrictions relate to central exchanges only, and may not comply with them, given that there are some working abroad and do not comply with the European Union regulations.

European users will be able to continue using USDT and Dai and other non -compatible symbols on their non -guardian portfolios, which are unknown and do not require verification of residence, and on decentralized exchanges that work from this point of view just like a non -guardian.

Those who want to continue to use Stablecoins in the central exchange of European Union can convert all Stablecoins into compatible symbols, such as USDC, or waiting and we hope that USDT will eventually become compatible.

Will Tether adapt to Mika?

The problem is that the company pregnancy It does not seem to have any intention to comply with the mica.

The company is really considered that it is dangerous to conduct all the necessary measures that the European Union must have as an electronic source of money, because this is among other things that may require the need to transfer the guarantee from American bonds to the funds they keep in European banks.

As it becomes clear from the USDC case in March 2023, the USD (USD) warranty involves a certain level of risk, because if the bank that is closed or a gap fails is closed.

Tether itself faced itself a somewhat similar problem when some of its money was frozen in 2018 due to the effects of the bank as it held part of the guarantee in a judicial investigation.

With American bonds, the risks from this point of view are lower, and thus Tether decided not to convert its property in the US bonds into cash, as well because thanks to it it gets an excellent profit.