Crypto.com suspects Tether, Paypal Stablecoin Services in Europe because of EU Mica
Digital Asset Exchange Crypto.com said it suspended some token services that were considered unauthorized in terms of European Union markets in the Crypto Assets Legisation (MICA) in a statement to clients on Tuesday.
The statement said that from January 31, it would not offer some services from Stablecoins, such as Tether USDT, Paypal USD, Pax Dollar next to Crypto.com Staked Eth and Crypto.com staked Sol. CoinDesk reached Tether, Paypal and Paxos for a comment.
Exchanges are required to follow European Unions policies for crypto assets known as MICA who require stablecoin providers and staking service providers to have the necessary permission to access Europeans. The rules affect all 30 countries in the European Economic Area.
“In accordance with the requirements of the MICA regulation, we suspend the purchase of affected possession of January’s 31st, 2025,” said a Crypto.com spokesman CoinDesk.
EU regulators sent a notice last week urging exchanges to ensure compliance with Stablecoin rules under MICA within the next two months. The European Securities and Markets Authority urged the exchanges to stop Offers unauthorized stablecoin tokens to EU clients.
“The crypto.com Staked Eth and Crypto.com staked Sol is classified as liquid staked tokens (LST),” under Mica, a person familiar with the matter said. As some LSTs may qualify as Asset (ART) reference tokens under the definitions of MICA regulation, crypto.com has chosen to remove these possessions, they added.
