In a significant move reflecting the evolving landscape of cryptocurrency regulation, digital asset exchange Crypto.com announced that it will suspend certain token services deemed unauthorized under the European Union’s Markets in Crypto Assets (MiCA) legislation. This decision, communicated to clients on Tuesday, marks a critical step in ensuring compliance with the stringent regulatory framework established by the EU.
Effective January 31, 2025, Crypto.com will no longer offer services related to specific stablecoins, including Tether (USDT), PayPal USD, and Pax Dollar. Additionally, the exchange will cease offering Crypto.com Staked ETH and Crypto.com Staked SOL. The decision follows a thorough review of the assets in question, positioning the exchange to align more closely with the regulatory stipulations that govern cryptocurrency activities within the European Economic Area.
Under the MiCA regulations, exchanges are mandated to ensure that stablecoin issuers and staking service providers possess the necessary authorization to operate within EU jurisdictions. This regulatory framework affects all 30 nations within the European Economic Area, highlighting the EU’s commitment to a structured and compliant cryptocurrency market.
“In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on the 31st January, 2025,” a spokesperson for Crypto.com confirmed to CoinDesk. The urgency of this decision is underscored by a recent notice from EU regulators, which called on exchanges to ensure compliance with stablecoin regulations within a two-month window. The European Securities and Markets Authority (ESMA) has been proactive in urging exchanges to halt the offering of unauthorized stablecoin tokens to EU clients.
Furthermore, it has been noted that Crypto.com Staked ETH and Crypto.com Staked SOL are classified as Liquid Staked Tokens (LST) under the MiCA framework. Given that some LSTs may potentially qualify as Asset Reference Tokens (ART) according to regulatory definitions, Crypto.com has opted to delist these assets to mitigate compliance risks.
This announcement serves as a reminder of the dynamic nature of the cryptocurrency regulatory environment and the ongoing adaptation required by exchanges to fulfill compliance obligations. As the landscape continues to evolve, exchanges must remain vigilant and proactive in adhering to the regulatory requirements set forth by governing bodies. For those interested in understanding more about the impending effects of the EU’s restrictive stablecoin rules, further reading is available here.
