Some stablecoins were delisted in the European Union because their issuers do not hold an authorization under the Markets in Crypto-Assets Regulation (MiCA). MiCA’s stablecoin rules began app
Some stablecoins were delisted in the European Union because their issuers do not hold an authorization under the Markets in Crypto-Assets Regulation (MiCA). MiCA’s stablecoin rules began applying in June 2024 and require issuers of dollar- and euro-pegged tokens offered to EU users to meet authorization, reserve, redemption and disclosure requirements.
Tether’s USDT, the largest stablecoin by market capitalization, is the most prominent large token that is not authorized under MiCA. Licensed exchanges cannot offer tokens that fail this test, so they removed them.
MiCA sorts stablecoins into two groups. An e-money token (EMT) tracks one official currency, such as the US dollar or the euro. An asset-referenced token (ART) tracks a basket of assets or currencies.
Each group has its own rules. EMT issuers must be authorized as a credit institution or an electronic money institution. MiCA also sets minimum reserve rules for EMTs:
A crypto-asset service provider (CASP) is any licensed firm that provides crypto services, such as an exchange, broker or custodian. National authorities keep public registers of authorized CASPs and stablecoin issuers. If a token’s issuer is not on the register, a CASP cannot serve it to EU clients.
The main reason is the bank deposit rule. Tether declined to restructure USDT to meet the requirement that significant stablecoin issuers hold at least 60% of reserves in European banks.
Tether CEO Paolo Ardoino has argued that MiCA’s reserve rules could create bank and redemption risks for USDT. Tether keeps a foothold in Europe through partners. StablR and Oobit have launched MiCA-compliant stablecoins, EURR and USDR, built on Tether’s Hadron tokenization platform.
USDT is not alone. Binance removed nine stablecoins for users in the European Economic Area (EEA), including USDT, DAI, First Digital USD and TrueUSD.
The removals came in stages over two years:
Under the 2025 rules, exchanges could still hold and move USDT for clients. ESMA’s January 2025 statement left custody and transfers open while restricting trading.
On October 8, 2026, the European Securities and Markets Authority (ESMA) closed that gap. Its opinion tells authorized CASPs to stop offering clients services involving ARTs or EMTs that fall outside MiCA’s requirements.
The opinion is addressed to national supervisors, who must enforce it. It covers more than trading. ESMA lists trading, exchange, custody, transfers, order execution, investment advice and portfolio management, among other services.
Firms must resolve clients’ remaining holdings within three months, putting the practical deadline at about January 8, 2027. Until then, they may help clients leave. Firms can support liquidation, conversion, withdrawal, transfer and safekeeping, but only for a limited time, under close supervision, and with no new purchases.
The opinion names no tokens. However, USDT does not appear on the EMT list that ESMA updated on October 7.
CryptoSlate wrote that removing USDT trading pairs alone may not satisfy ESMA where a MiCA-authorized provider keeps servicing the token. NewsBTC noted that a stablecoin does not need to be issued in Europe to create a European compliance problem.
Coinbase has set the earliest firm cutoff. EEA customers have until October 30, 2026, to withdraw affected stablecoins, and anything left after that will be automatically converted into USDC. The affected list includes USDT, PAX, PYUSD, GUSD, GYEN, DAI, PAXG, USD1 and USDS, among others.
Authorized tokens stay listed. On October 14, 2026, the European Banking Authority (EBA) named Circle’s USDC the first significant e-money token among 45 notified under MiCA. From November 12, 2026, the EBA takes over direct oversight of USDC’s own funds, reserves, liquidity, and recovery and redemption plans from France’s ACPR.
Banks are also entering the market. De Nederlandsche Bank authorized Qivalis as an electronic money institution on October 14, 2026, and 37 European banks from 15 countries back its planned euro stablecoin.
MiCA lets EU-licensed platforms offer only stablecoins from authorized issuers. Tether chose not to apply, so USDT, along with tokens such as DAI and PYUSD, lost exchange access in stages from late 2024. ESMA’s October 2026 opinion extends the restriction to custody and transfers, with a supervised exit ending about January 8, 2027. Authorized tokens such as USDC remain available, now under direct EBA supervision.
