Revolut drops Tether USDT as MiCA rules force major crypto shift
Revolut has confirmed it will remove Tether’s USDT from eligible European accounts after new European Union crypto rules took effect under the Markets in Crypto-Assets (MiCA) framework.
Summary
- Revolut will delist USDT for eligible European users under the EU’s MiCA regulations.
- Users can buy USDT until July 6 and withdraw or sell holdings until Aug. 31.
- Tether also recently froze 131 TRON wallets after new U.S. sanctions targeted ISIS-K-linked addresses.
According to an email sent by Revolut to affected customers, the fintech company will phase out support for USDT over the next two months, giving users until Aug. 31 to sell, withdraw, or transfer their holdings before the stablecoin is removed from eligible accounts.
Revolut has set a phased deadline for USDT holders
Revolut said customers will continue to be able to buy USDT until July 6. Beginning July 30, the platform will stop accepting new USDT deposits, while users will still be allowed to sell their tokens or transfer them to supported external crypto wallets until Aug. 31.
The company told customers to review their USDT holdings before Aug. 31 at 12:00 PM GMT because, after that deadline, the stablecoin will no longer be supported in eligible Revolut accounts. Under Revolut’s crypto delisting policy, any remaining USDT balance will be automatically converted into the account’s base currency using the market price of USDT at the time the delisting takes effect.
Revolut also clarified that the restrictions apply only to notified users. The company said the changes will not affect access to USDT in jurisdictions where the stablecoin continues to be supported.
MiCA requirements continue to reshape stablecoin access
Revolut linked the decision to the European Union’s MiCA framework, which now requires stablecoin issuers and crypto service providers operating in the bloc to comply with licensing, reserve, disclosure, and supervisory rules.
crypto.news previously reported that USDT has not received authorization under MiCA. Tether Chief Executive Officer Paolo Ardoino argued that the framework was not designed for the world’s largest stablecoin because of its reserve-related requirements. Ardoino previously said those rules raised concerns about reserve composition, liquidity management, and redemption risks for issuers.
Following the July 1 implementation of MiCA enforcement measures, Revolut joins other crypto platforms that have restricted access to USDT for European customers because the token lacks MiCA authorization.
The regulatory pressure comes as Tether continues to face increased scrutiny in other areas. As crypto.news reported earlier, the company recently froze USDT balances held in 131 wallets on the TRON blockchain after the U.S. Treasury’s Office of Foreign Assets Control updated sanctions tied to ISIS-K.
Notably, OFAC added 134 cryptocurrency wallet identifiers to its sanctions list on July 1, including 131 TRON addresses and three Monero addresses linked to ISIS-K.
The sanctions update identified the wallets as belonging to the Islamic State Khorasan Province, the Afghanistan and Pakistan branch of the Islamic State, which had already been designated as a terrorist organization before the additional wallet identifiers were published.
While the sanctions action is unrelated to MiCA, it highlights Tether’s ability to freeze tokens in response to regulatory and law enforcement actions. At the same time, Revolut’s delisting decision illustrates how new European crypto rules are affecting the availability of stablecoins that have not secured authorization under the bloc’s regulatory framework.
