The Crypto.com exchange has suspended purchases of several stablecoins in the European Union to comply with the Markets in Crypto-Assets Regulation (MiCA). Affected cryptocurrencies include:
- Tether (USDT)
- PayPal USD (PYUSD)
- Dai (DAI)
- Wrapped Bitcoin (WBTC)
- Pax Dollar (PAX)
Deposits will be discontinued shortly, while withdrawals remain available until March 31, the official delisting date.
Why Is This Happening?
MiCA, enacted by the EU, imposes strict rules on stablecoin issuers, requiring:
- 60%+ reserves held in European banks.
- Enhanced transparency and disclosure.
- Regular audits to verify 1:1 backing by fiat currency.
👉 Learn how MiCA impacts global crypto markets
Key Implications for Stablecoins
- Tether (USDT): Faces operational hurdles under MiCA due to its $140B market dominance.
- PayPal USD (PYUSD): Lags behind with a $440M market cap but has partnerships (e.g., BitPay).
- Emerging Markets: USDT remains popular outside the EU, where regulations differ.
Industry Reactions
Arvind Siva (Concordium) notes:
"MiCA provides regulatory clarity but may fragment global markets. The U.S. could see policy shifts under a new administration."
Tether criticized MiCA’s complexity:
"Rushed actions risk harming EU consumers and destabilizing the market."
FAQ Section
Q: Can I still withdraw my delisted stablecoins?
A: Yes, until March 31.
Q: Will MiCA affect non-EU users?
A: No, but it may influence future U.S. regulations.
Q: Why target stablecoins?
A: To mitigate risks like insufficient reserves and volatility.
👉 Explore compliant alternatives to stablecoins
Looking Ahead
MiCA sets a precedent for global crypto regulation, pushing issuers toward:
- Stronger reserves.
- Bank-like transparency.
- Cross-border compliance.