Crypto.com to Halt Certain Token Services in Compliance with EU MiCA Regulations

Crypto.com to Halt Certain Token Services in Compliance with EU MiCA Regulations

Crypto exchange Crypto.com has announced that it will suspend certain token services deemed unauthorized under the European Union’s Markets in Crypto Assets (MiCA) legislation. The decision, communicated to its clients on Tuesday, comes as part of the exchange’s efforts to align with the upcoming regulatory framework.

Starting January 31, 2025, Crypto.com will cease offering specific stablecoin-related services, including Tether (USDT), PayPal USD, Pax Dollar (USDP), as well as Crypto.com Staked ETH and Crypto.com Staked SOL. CoinDesk has reached out to Tether, PayPal, and Paxos for comments on the matter.

The MiCA regulations, which apply across all 30 nations within the European Economic Area (EEA), mandate that stablecoin issuers and staking service providers obtain proper authorization to operate in the region. To comply with these requirements, exchanges must ensure they are not offering unapproved stablecoin tokens to EU customers.

“In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on January 31, 2025,” a Crypto.com spokesperson confirmed to CoinDesk.

Last week, the European Securities and Markets Authority (ESMA) issued a notice reminding exchanges of their obligation to comply with MiCA’s stablecoin provisions within the next two months. The regulator urged platforms to discontinue services for stablecoins that lack proper authorization under the new rules.

Additionally, a source familiar with the situation noted that Crypto.com Staked ETH and Crypto.com Staked SOL fall under the category of Liquid Staked Tokens (LSTs) as per MiCA definitions. Since some LSTs may be classified as Asset-Referenced Tokens (ARTs) under the regulation, Crypto.com has opted to delist these assets to ensure full compliance.

This move underscores the tightening regulatory landscape for crypto exchanges operating within the EU, as platforms navigate new requirements to continue serving European customers legally.