Revolut Ditches Tether's USDT Amid MiCA Regulatory Pressure

Financial services company Revolut has announced it will delist Tether's USDT stablecoin from its European operations by August 31, in compliance with the Markets in Crypto-assets (MiCA) regulatory framework. This means that customers in Europe who hold USDT will need to sell, withdraw, or transfer their holdings before the deadline.

According to Revolut, the delisting is a phased process. Customers can continue buying USDT until July 6, but new deposits will stop after July 30. After August 31, users will no longer be able to hold USDT in their accounts.

The company has advised customers to check their USDT balance before the cut-off date and has stated that any remaining USDT in accounts will be exchanged for the customer's base currency based on the price of USDT at the delisting period. This change is specifically targeted at eligible accounts from Europe, and users will still have access to USDT in regions where it is listed.

The move follows other crypto platforms restricting access to USDT for their European customers due to MiCA compliance measures. Tether's CEO Paolo Ardoino has stated that the legal framework was not created for the world's largest stablecoin, citing issues with reserve requirements, liquidity management, and possible redemption risks for issuers.