Revolut has announced that it will discontinue support for Tether's USDT stablecoin for its customers in Europe, in response to the EU's new Markets in Crypto-Assets (MiCA) regulations. This decision reflects the ongoing transformation of the digital asset landscape within the European Union as it implements stricter compliance measures for cryptocurrency that impact fintech platforms.
Customers can purchase USDT until July 6, 2023, but will no longer be able to make deposits after July 30. By August 31, users must either sell or withdraw their remaining USDT holdings. Any unliquidated funds will be automatically converted to the account's base fiat currency.
The MiCA regulations impose stringent requirements on stablecoin issuers, including mandates for licensing, reserve management, and transparency obligations. Tether’s USDT has not received approval under these new regulations, prompting many regulated platforms across Europe to either limit or eliminate support for this token.
Impact of MiCA Regulations
This shift in Revolut's offering underscores the growing influence of MiCA on the European crypto environment. Exchanges and fintech companies are increasingly adapting their digital asset services to comply with the bloc's regulatory framework. As such, the movement away from unregulated stablecoins like USDT is likely to continue as more stringent compliance measures come into effect.
Market Response
As the market adjusts to these regulatory changes, it is expected that the removal of USDT from various platforms will affect liquidity and trading volumes for many users. Investors and traders should remain informed and may need to evaluate alternative stablecoins that comply with MiCA standards. For insights into the evolving crypto landscape, see BlackRock Reports $1.2 Billion Withdrawal from Cryptocurrency ETFs and Evaluating the Viability of Solana Investments for 2026.
