Revolut, a financial services company, is delisting Tether's USDT for its customers in the European Economic Area and Switzerland. This move is part of the company's compliance with the EU's Markets in Crypto-Assets (MiCA) regulation. According to reports, new USDT purchases have already been blocked, and deposits will be disabled from July 30. Any remaining USDT balances will be automatically converted to fiat on August 31.
The delisting is a result of USDT not obtaining a MiCA authorization, whereas Circle's USDC has. Revolut, which holds a MiCA crypto-asset service provider license, has stated that the move is necessary to comply with the new licensing, reserve-management, and consumer-protection rules for e-money tokens.
This development may have significant implications for the crypto market, with some experts viewing it as a negative trend. The removal of USDT from Revolut's services leaves USDC as the only major stablecoin option for the company's users in the region.
The EU's MiCA regulation aims to provide a harmonized regulatory framework for crypto-assets in the European Union. The regulation sets out rules for the issuance, trading, and custody of crypto-assets, including stablecoins like USDT and USDC. Revolut's decision to delist USDT highlights the importance of compliance with these regulations for crypto-asset service providers operating in the EU.