Revolut to Remove Tether (USDT) for EU Users by August 31

Revolut has announced the removal of Tether (USDT) from its platform for European Union users, effective August 31, a decision influenced by Tether's choice not to pursue authorization under the EU's new Markets in Crypto-Assets (MiCA) regulations.

Starting July 6, users can continue to purchase USDT, but no new deposits will be accepted after July 30. The wind-down process will see remaining balances being converted to fiat at the end of August.

Details of the Delisting

In a communication shared on July 3 via X, Revolut directed customers to a DefiLlama dashboard, showcasing licensed alternatives. The fintech company has gained traction with a valuation of $75 billion, serving over 75 million customers globally.

MiCA, which came into full enforcement on July 1, is reshaping the landscape for crypto access in Europe. The regulation stipulates that major stablecoin issuers must maintain at least 60% of their reserves in bank deposits. CEO Paolo Ardoino of Tether has critiqued this requirement, noting that it could lead to liquidity issues. Tether had previously phased out its euro stablecoin, EURT, in November 2024 to avoid adjustments for compliance.

Tether's Regulatory Challenges

Tether's absence from the EU’s licensed listings is closely tied to ongoing scrutiny regarding its auditing practices. Consumers’ Research has raised alarms about Tether’s reluctance to undergo an independent audit of its reserves, a promise that has remained unfulfilled since 2017.

A recent letter to US governors highlighted concerns about Tether's lack of transparency, which could pose significant challenges for future MiCA authorization. So far, Tether has opted for quarterly attestations instead of complete audits, which has raised further concerns about its stability.

Impact on the Stablecoin Market

The delisting of USDT could bolster the position of Circle's USDC, which currently has MiCA authorization and continues to operate on licensed exchanges. USDC appears to be gaining momentum as USDT exits regulated European markets.

Although USDT is set to be removed from Revolut's platform, it remains the largest stablecoin in the market and the third-largest cryptocurrency overall.