Revolut drops USDT in Europe as Tether skips MiCA authorization

iEXExchanger
Revolut drops USDT in Europe as Tether skips MiCA authorization

Starting July 6, Revolut users across the EU can no longer buy USDT. Tether refused to seek MiCA e-money authorization, forcing Europe's biggest fintech to delist the world's top stablecoin.

Starting today, July 6, Revolut customers across the EU and EEA can no longer buy USDT. By July 30, incoming USDT deposits will be blocked entirely. Come August 31, whatever balances remain get automatically converted to fiat at the prevailing exchange rate — no warning, no choice.

The trigger was MiCA's full enforcement, which kicked in on July 1. Under the regulation, any EU-licensed crypto platform can only offer stablecoins whose issuers hold official e-money institution authorization. Tether never applied. CEO Paolo Ardoino has been consistent about why: MiCA requires that at least 60% of reserves sit in bank deposits, a structure he argues creates dangerous liquidity risks for a token with over $140 billion in circulation. Tether chose to preserve its reserve model at the cost of European market access.

Revolut holds a MiCA-compliant CASP license through Cyprus's regulator CySEC, leaving it no room to grandfather USDT listings. For a platform serving tens of millions of users across Europe, that means removing one of the most widely held crypto assets on the continent.

Circle's USDC is the clear winner here. It already carries full MiCA e-money authorization and stays listed on regulated European venues while Tether clears the shelves. A similar dynamic played out in late June when Binance halted EU services over the same MiCA deadline — the regulation is steadily reshaping which stablecoins Europeans can access through licensed platforms.

EU customers have nearly two months to act on their own terms. Selling or withdrawing USDT to an external wallet before August 31 is the only way to control timing and pricing. After that, Revolut decides. Whether Tether eventually seeks MiCA authorization — or permanently trades European retail access for reserve independence — is the question the market will be watching.

Questions and answers

Frequently asked questions about this article

Why is Revolut delisting USDT?

Tether did not apply for e-money institution authorization under MiCA, which came into full force on July 1, 2026. Revolut holds a CASP license through CySEC and must only list stablecoins compliant with the regulation — USDT no longer qualifies.

What happens to my USDT balance after August 31?

Revolut will automatically convert the balance to fiat at the market rate at that moment. Users cannot choose the rate or timing. To maintain control, withdraw USDT to an external wallet or sell it before August 31.

Which stablecoins can EU users still access on Revolut?

Circle's USDC remains available as it holds full MiCA e-money authorization. Before switching to any other stablecoin, verify that its issuer also holds a valid MiCA e-money institution license.

Why did Tether choose not to obtain MiCA authorization?

Tether CEO Paolo Ardoino argued that MiCA's requirement to hold at least 60% of reserves in bank deposits creates concentration and liquidity risks for a token with over $140 billion in circulation. Tether chose to preserve its reserve model at the cost of European market access.