Shockwave: European Fintech Giant Dumps Tether USDT!
Europe's leading fintech platform, Revolut, is discontinuing support for Tether (USDT) by August 31, a direct consequence of the new Markets in Crypto-Assets (MiCA) regulation. Users have until July 6 to purchase and until August 31 to sell or withdraw USDT before balances are converted to fiat.
Revolut, a prominent fintech platform in Europe, has announced its decision to cease support for the Tether (USDT) stablecoin, with full discontinuation effective August 31. This development was first reported by Wu Blockchain, citing notifications sent to users via app push notifications and emails.
According to the notifications, users will be able to purchase USDT until July 6. However, Revolut will stop accepting new Tether (USDT) deposits on July 30. Users will have a grace period until August 31 to either sell their USDT holdings or withdraw them to external wallets. Any remaining USDT balances in user accounts after this deadline will be automatically converted into fiat currency at the prevailing exchange rate.
This strategic move by Revolut comes in the wake of the European Union's comprehensive Markets in Crypto-Assets (MiCA) regulation, which officially came into full effect on June 30. The MiCA framework mandates that crypto exchanges and platforms operating within the European Economic Area (EEA) must suspend services for tokens deemed unauthorized under the new rules. Specifically, Tether's USDT is now restricted in the EEA because its issuer did not apply for the necessary e-money authorizations required by MiCA. This has led to other major exchanges also delisting USDT for their European user base.
The implementation of MiCA ushers in a new regulatory era for the EU's crypto market. Crypto firms serving customers across the region are now required to hold a specific license or cease their operations. The regulation imposes strict rules, especially for stablecoin issuers and staking service providers, who must obtain the necessary authorization to be accessible to European users. These regulations are broad-reaching, affecting all 30 countries within the European Economic Area.
In response to the new framework, the European Securities and Markets Authority (ESMA), the EU's financial rule-setter, has issued a clear ultimatum. Unauthorized crypto-asset service providers have been instructed to orderly wind down their operations while ensuring client interests are secured, as the MiCA transitional period concludes.