Revolut Axes Support for USDT Amid EU Regulatory Crackdown

Revolut, a digital bank serving approximately 65 million users in Europe, has announced that it will stop supporting Tether USDt (USDT) for its customers after August 31. The move follows the European Union's Markets in Crypto-Assets framework, known as MiCA, which requires stablecoin issuers to meet specific authorization requirements.

As part of the delisting process, Revolut will automatically convert any remaining USDT balances into each user's base fiat currency at the day's market rate. Customers can continue buying USDT until July 6 and deposits will cease on July 30. The decision is reportedly due to Tether's refusal to meet MiCA's reserve rules, which would force large issuers to park a significant portion of their backing in EU bank deposits.

Ardoino, Tether's CEO, has criticized MiCA's reserve requirements, warning that they could create systemic risk. Circle's USDC and EURC stablecoins, on the other hand, are positioned to absorb regulated European demand by default.