Revolut has announced plans to delist Tether’s USDT from its eligible European accounts, following the introduction of new crypto regulations from the European Union under the Markets in Crypto-Assets (MiCA) framework.
Details of the Delisting
As stated in a communication to users, Revolut will gradually phase out support for USDT over the next two months; customers have until August 31 to sell, withdraw, or transfer their holdings before the stablecoin is officially removed. This decision affects those using Revolut in Europe, while Tether remains operable in other jurisdictions.
Prior to the delisting, users can continue to purchase USDT until July 6. However, starting July 30, Revolut will not accept new deposits of the stablecoin, although users can still sell or transfer their existing tokens until the end of August.
Implications of MiCA Regulations
The changes stem from the MiCA regulations, which mandate that stablecoin issuers and crypto service providers within the EU adhere to specific licensing, reserve, disclosure, and supervisory standards. USDT, which has not received authorization under this framework, is being impacted alongside other platforms that are enforcing similar restrictions on European customers.
Revolut emphasized the importance of reviewing USDT balances before the deadline of August 31, 12:00 PM GMT. After this point, any remaining USDT will automatically convert to the account’s base currency based on market rates at the time of the delisting. The fintech firm clarified that these new rules are only applicable to users who have been directly notified.
Tether's Response to Regulatory Changes
Recent actions by Tether also included freezing 131 TRON wallets due to new U.S. sanctions that targeted addresses linked to ISIS-K. Tether’s CEO, Paolo Ardoino, has expressed concerns that the MiCA framework poses risks regarding reserve composition and liquidity management, making it unsuitable for the world’s leading stablecoin.
As Revolut moves forward, it joins other crypto platforms in curbing USDT access in Europe, aligning with the recent regulatory environment that reshapes the landscape for stablecoins.
Interested readers can learn more about other regulatory developments in our articles on EU actions against retail investor markets and European crypto regulations.
