Overview
- Revolut confirmed in early July that it will stop USDT purchases on July 6, stop accepting new USDT deposits on July 30, and remove the token from eligible EU accounts on August 31 with any leftover balances auto‑converted to users’ base fiat.
- MiCA entered full enforcement on July 1 and requires licensed crypto firms to list only stablecoins that obtain EU authorization, a rule that directly drove Revolut’s compliance decision.
- Tether chose not to seek MiCA authorization, with CEO Paolo Ardoino arguing the regime’s roughly 60% bank‑deposit reserve requirement raises liquidity and banking risks.
- Tether has pursued technical alternatives such as Hadron/StablR to stay active in Europe, but those tokenization efforts have exposed users to smart‑contract risks, including a reported $2.8 million StablR exploit.
- Circle’s USDC and EURC have MiCA approval and are positioned to capture liquidity that licensed platforms no longer offer in USDT, even though individuals may still hold or withdraw USDT outside licensed venues.