MiCA takes full effect and USDT lacks authorization: what changed at exchanges and for those paying in Europe
The European crypto-asset regulation applied in full on December 30, 2024. Tether has no authorization as an e-money token issuer, and Coinbase has already removed USDT from European retail. See the effect for anyone with a supplier in the European Union.
Historical reference: January 7, 2025. Published on this site on November 2, 2026. Dates in the text identify the period covered.
In this article
Key points
- MiCA, the European crypto-asset regulation, applied in full from 12/30/2024. The rules for stablecoins had applied since 06/30/2024.
- Tether has no authorization as an e-money token issuer in the European Union. Coinbase removed USDT from European retail on 12/13; other platforms kept the token through mid-December.
- The law regulates service providers, not people holding USDT in their own wallets. Even so, converting USDT to euros on regulated European platforms becomes harder.
- Anyone paying a supplier in Europe should confirm how the supplier plans to receive and convert the funds before choosing the currency and the network.
São Paulo, January 7, 2025 — A week after the European crypto-asset regulation took full effect, USDT, the world's most traded stablecoin, still has no authorization to circulate as an e-money token in the European Union. Tether, its issuer, did not obtain the registration the law requires, and European platforms are reorganizing their catalogs. For anyone paying a supplier on the continent, the effect is practical: it may change how the supplier converts the money received.
What MiCA is and what now applies
MiCA (*Markets in Crypto-Assets*, Regulation (EU) 2023/1114) is the rule that creates a single set of crypto-asset rules across the bloc's countries. It applied in two stages, and the second, on December 30, 2024, opened the services market:
- 06/09/2023Regulation (EU) 2023/1114 published in the Official Journal of the European Union.
- 06/30/2024Rules for stablecoins take effect: e-money tokens (EMTs) and asset-referenced tokens (ARTs).
- 12/13/2024Coinbase removes USDT and other stablecoins for retail customers of Coinbase Europe and Coinbase Germany.
- 12/30/2024The rest of the regulation takes effect, including the authorization of crypto-asset service providers.
USDT is a token pegged to a single currency, the dollar, and so tends to be treated as an e-money token. Under the text, only issuers that are authorized credit institutions or e-money institutions, with a published *white paper*, may offer it to the public or seek its admission to trading in the EU. The issuer must also redeem the token at face value at any time, when the holder asks (arts. 48 and 49).
Why USDT was left without authorization
Tether does not appear among the authorized issuers. In reaction to Coinbase's exit, the company said it was "finalizing its long-term plans for the region" and criticized "the hasty actions of a limited number of exchanges," according to Decrypt. Circle, the issuer of USDC, obtained a valid MiCA license in 2024, and Coinbase kept USDC and EURC, which it considers compliant.
There is a gray area. On December 17, Cointelegraph noted that European authorities had not given a clear position on whether USDT should be considered in breach of the law. Each platform decided on its own, based on its reading of the regulatory risk.
What the exchanges did
The response was not uniform. The table below shows the situation recorded by the press in mid-December; it changes quickly, so check each platform's latest notice.
| Platform | Reported status |
|---|---|
| Coinbase (Europe and Germany) | Removed USDT, PAX, PYUSD, GUSD, GYEN and DAI from retail on 12/13; kept USDC and EURC |
| OKX | Prioritized euro and USDC pairs in the EEA; USDT still appeared on 12/17 |
| Binance, Crypto.com and Kraken | Kept USDT for Europeans on 12/17 |
| Bitpanda | Still listed USDT; did not say whether it planned to remove it |
This table does not include any decisions made after December 17.
What changes for anyone paying a supplier in Europe
MiCA regulates companies that provide services with crypto-assets; it does not ban a person from holding USDT in their own wallet or from transferring it. The impact shows up at the end of the chain: a European supplier who receives USDT needs a way to convert it to euros. If the regulated platform the supplier uses stops handling the token, conversion becomes more expensive or slower, or requires other routes, such as over-the-counter (OTC) desks or platforms outside the EU.
European authorities have not yet clarified every point, and Tether said it is defining its plans for the region. Assess case by case and follow platforms' notices before settling on a recurring USDT payment with a European supplier.
What to watch in the coming weeks
The regulation provides for a transition: providers already operating under national rules may keep operating until July 1, 2026 or until the authorization decision, whichever comes first, and each country may shorten that period (art. 143). This helps explain why platforms are not acting at the same time. Three points should guide anyone with a supplier in the region:
- Authorities' position. A clarification on whether authorized providers can keep USDT in their catalogs would change the picture.
- Tether's plans. The company said it is defining its strategy for the region.
- Platform notices. Each exchange publishes its own deadlines and restrictions. Whoever pays should confirm with the supplier what the situation is on the platform the supplier uses.
To understand the token itself and where it circulates, see what USDT is and what the TRON network is. In Brazil, the equivalent regulation is still under consultation: see the Central Bank's proposals.
Frequently asked questions
Has USDT been banned in Europe?
There is no ban on holding or transferring USDT in your own wallet. What MiCA limits is the offering of the token by authorized service providers, since Tether has no authorization as an e-money token issuer. In practice, some platforms have already restricted USDT.
When did MiCA take effect?
The regulation was published in June 2023. The rules for stablecoins have applied since June 30, 2024, and the rest, including the authorization of service providers, since December 30, 2024.
Which exchanges removed USDT?
As of December 17, 2024, Coinbase had removed USDT for European retail customers, and OKX prioritized euro and USDC pairs. Binance, Crypto.com and Kraken still offered the token. The situation changes often.
Can I pay a European supplier with USDT?
Technically yes: a transfer between wallets is not banned. But the supplier needs to be able to convert the amount to euros. Agree on this beforehand and consider alternatives, such as USDC or a euro transfer.
Found it useful? Share it with anyone who pays suppliers abroad.
Sources
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) · EUR-Lex, Jun 9, 2023
- Article 49: Issuance and redeemability of e-money tokens · ESMA, Interactive Single Rulebook
- Coinbase Europe delists USDT, other stablecoins citing EU compliance · Decrypt, Dec 13, 2024
- Tether (USDT) trading in the EU after Coinbase delisting · Cointelegraph, Dec 17, 2024
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