Key Information:

• Crypto.com will halt specific token services in Europe that are not authorized.
• The European Union’s MiCA legislation mandates that stablecoin issuers must be authorized for services accessible to Europeans.

Digital asset exchange Crypto.com has declared that it will cease certain services from stablecoins, including Tether USDT and Paypal USD, starting January 31, 2025. The decision is in response to the EU’s Markets in Crypto Assets (MiCA) regulations, which require compliance from all exchanges operating in the European Economic Area.

The company announced, “In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on the 31st January, 2025.” EU regulators emphasized the need for exchanges to adhere to these regulations and specifically mentioned limiting unauthorized stablecoin tokens to clients in the EU.

Reportedly, Crypto.com Staked ETH and Crypto.com Staked SOL will also be impacted, as they are classified under Liquid Staked Tokens (LST) and may fall under the definition of Asset Reference Tokens (ART) per MiCA regulations.

For further details, see EU’s Restrictive Stablecoin Rules Take Effect Soon and Issuers Are Running Out of Time.