Crypto.com to Suspend Select Stablecoin and Staking Services in Europe Due to MiCA Regulations

Cryptocurrency exchange Crypto.com has announced it will suspend certain stablecoin and staking services in Europe starting January 31, 2025, due to the European Union's Markets in Crypto-Assets (MiCA) regulation. This move affects services related to Tether (USDT), PayPal USD, Pax Dollar, Crypto.com Staked ETH, and Crypto.com Staked SOL. The decision comes as EU regulators push for stricter compliance with MiCA rules, impacting all 30 countries in the European Economic Area.

Crypto.com's decision aligns with MiCA's requirements for stablecoin issuers and staking service providers to obtain necessary authorization to operate within the EU. The exchange confirmed the suspension of purchases for the affected assets, stating the move is in accordance with MiCA regulatory requirements.

The move follows a recent notice from EU regulators urging exchanges to comply with MiCA's stablecoin rules within the next two months. The European Securities and Markets Authority (ESMA) has specifically called for exchanges to cease offering unauthorized stablecoin tokens to EU clients.

MiCA classifies Crypto.com Staked ETH and Crypto.com Staked SOL as Liquid Staked Tokens (LSTs). Sources familiar with the matter explained that some LSTs might be considered Asset Reference Tokens (ARTs) under MiCA's definitions. Consequently, Crypto.com has opted to delist these assets to ensure compliance. The company has reached out to Tether, PayPal, and Paxos for comment on the situation.

Crypto.com's suspension of these services highlights the increasing regulatory scrutiny facing the cryptocurrency industry, particularly in Europe. The implementation of MiCA underscores the EU's commitment to establishing a clear legal framework for digital assets. This move is likely to prompt other exchanges operating within the EU to review their service offerings and ensure full compliance with the new regulations.