Digital Asset Exchange Crypto.com said it will suspend certain token services that are considered unauthorized with regard to the European Union’s markets in Crypto Assets Law (MICA) in a statement to its clients on Tuesday.
The statement said that from January 31, it will no longer offer certain services from stablecoins, such as Tether Usdt, PayPal USD, Pax Dollar along with Crypto.com stacked ETH and Crypto.com Staked Sol. Coindesk reached out to Tether, Paypal and Paxos for a comment.
Exchanges are required to follow the European trade unions tailored rules for crypto assets known as MICA, which requires stablecoin issuers and stakeing service providers to have the necessary permission to access Europeans. The rules affect all 30 nations in the European economic field.
“In accordance with MICA legislative requirements, we will suspend purchase of affected assets on January 31, 2025,” a Crypto.com spokesman told Coindesk.
The EU regulators issued a message last week calling for exchanges to ensure compliance with its stablecoin rules under MICA within the next two months. European Securities and Markets Authority urged exchanges to stop offering unauthorized stableecoin tokens to EU clients.
“Crypto.com Stacked Eth and Crypto.com Stacked Sun is classified as Liquid Stake Tokens (LST),” Under Mica, someone who is familiar with the case said. Since some LSTs can qualify as asset reference sign (art) under MICA -regulatory definitions, Crypto.com has chosen to delay these assets, they added.
Read more: The EU’s restrictive stableecoin rules take effect soon and issuers are running out of time
