Crypto.com to Suspend Certain Token Services in Compliance with EU Regulations
In a recent announcement, digital asset exchange Crypto.com informed its clients that it will be suspending specific token services that do not align with the European Union’s Markets in Crypto Assets legislation (MiCA). This change is set to take effect on January 31, 2025.
The tokens affected by this suspension include prominent stablecoins such as Tether (USDT), Paypal USD, and Pax Dollar, in addition to Crypto.com Staked ETH and Crypto.com Staked SOL. CoinDesk has reached out to representatives from Tether, Paypal, and Paxos for their comments regarding this development.
Under the MiCA framework, exchanges operating within the European Economic Area (EEA), which encompasses all 30 member nations, are mandated to adhere to specific regulations governing crypto assets. These rules stipulate that stablecoin issuers and staking service providers must secure the necessary authorizations to legally offer their services to clients in Europe.
A spokesperson for Crypto.com stated, “In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on January 31, 2025.” This proactive measure comes after EU regulators sent out a directive last week, urging exchanges to ensure their compliance with the stablecoin regulations outlined in MiCA within a two-month timeframe.
The European Securities and Markets Authority has also called on exchanges to cease offering unauthorized stablecoin tokens to clients within the EU. Furthermore, it has been noted by an insider that Crypto.com Staked ETH and Crypto.com Staked SOL are categorized as Liquid Staked Tokens (LST) under the MiCA regulations. Given that certain LSTs may be classified as Asset Reference Tokens (ART) based on MiCA’s regulatory definitions, Crypto.com has opted to delist these specific assets.
