Tether has expressed disappointment over the delisting of its USDT stablecoin from European exchanges following the implementation of the Markets in Crypto-Assets (MiCA) framework. The company criticised what it described as “rushed actions” taken by trading platforms and warned of potential market disruption.
Crypto.com has confirmed it will remove USDT along with nine other tokens from its European platform starting 31 January to ensure compliance with MiCA regulations. Coinbase, which had already delisted USDT in December 2024, announced it had removed a total of eight tokens to align with new regulatory requirements. The affected tokens include Wrapped Bitcoin (WBTC) and Dai (DAI).
Tether warned that the regulatory framework could destabilise the European crypto market and increase risks for investors. The company stated that MiCA’s early-stage implementation might create disorder in the industry, particularly for non-compliant stablecoins that must be fully restricted by the end of the first quarter of 2025. European regulators have instructed crypto asset service providers to begin restricting such stablecoins by the end of January, though limited sell options may remain available until 31 March.
While expressing concerns over the impact of MiCA, Tether acknowledged the importance of a structured regulatory approach. However, the company highlighted that certain provisions in the new framework could make it more challenging to operate EU-licensed stablecoins, potentially introducing unintended risks. Tether has been adjusting its European strategy, developing MiCA-compliant initiatives such as Hadron and Quantor.
The shifting regulatory environment has led to a changing market dynamic between stablecoin issuers. Circle’s USDC, which is MiCA-compliant, has gained traction in Europe. Following the recent launch of Donald Trump’s memecoins, TRUMP and MELANIA, USDC’s market capitalisation surged by $8 billion, marking a nearly 20% increase, while USDT’s market cap remained largely stable.
In response to regulatory pressures, Tether has relocated its operations to El Salvador, securing a licence as a digital asset service provider and stablecoin issuer. CEO Paolo Ardoino praised the move, stating that the company supports El Salvador’s vision of financial freedom and decentralised innovation. Reports indicate that both Ardoino and Tether’s COO, Claudia Lagorio, have acquired real estate and obtained citizenship in El Salvador.
As MiCA regulations take effect, Tether is evaluating their long-term implications while preparing to comply with evolving requirements. The company remains committed to developing new technologies and expanding its presence in jurisdictions with favourable regulatory frameworks.
