Digital Asset Exchange Crypto.com said it will suspend certain tokens services that are considered unauthorized in terms of the European Union markets in cryptographic asset legislation (MICA) in a statement to its customers on Tuesday.
The statement said that as of January 31, it will no longer offer certain stablecoins services, such as Tether Usdt, Paypal Usd, Pax Dollar along with Crypto.com Eth and Crypto.com Staded Sol. COINDESK contacted Tether, PayPal and Paxos for A comment.
The exchanges are required to follow the rules of European unions for cryptographic assets known as MICA that require Stablecoin issuers and rethinking service providers to have the necessary authorization for Europeans to access. The rules affect the 30 nations in the European economic area.
“In line with the regulatory requirements of MICA, we will suspend the purchase of affected assets on January 31, 2025,” said a Crypto.com spokesman for COINDESK.
The EU regulators sent a notice last week urging exchanges to guarantee compliance with their stablecoin under mica rules within the next two months. The European Authority of Securities and Markets urged exchanges to stop offering unauthorized tokens stablein to EU customers.
“Crityo.com State Eth and Crypto.com Sol states are classified as liquid chips Valued state (LST),” said Mica, said someone familiar with the matter. As some LST can qualify as asset reference tokens (art) under the regulatory definitions of Mica, Crypto.com has chosen to eliminate these assets, they added.
Read more: the restrictive rules of EU stablecoin enter into force soon and the emitters are running out of time
