Following the implementation of the European Union Act on the Regulation of Encrypted Asset Markets, restrictions on unauthorised stable currency in the European market continued to expand. Revolut has informed some European users that it will phase out support for USDT issued by Tether in the next two months.

Phased discontinuation of support for USDT

According to a circular sent to users by Revolut, the relevant account could still be purchased by 6 July. As of 30 July, the platform will no longer accept a new USDT charge, but the user can continue to sell or transfer to a supported external encrypted wallet until 31 August.

Revolut states that USDT will no longer be supported by the relevant account after 12 noon (GMT) on 31 August. In the event that there are still unprocessed balances in the account at that time, the platform will automatically convert to the base currency of the account at the market price at the time the shelf becomes effective.

European accounts affected only by notification

Revolut states that this adjustment applies only to eligible European users who have received notification, without prejudice to other jurisdictions that can continue to support USDT. In other words, this is not a global, uniform, but a regional adjustment to EU regulatory requirements.

This arrangement shows that the European encryption service is further tightening access to non-compliant stabilizers after MiCA has landed. For users, the impact is mainly on buy-in, charge-in and hold-out processing timelines.

MiCA continues to change the European stable currency pattern

Revolut attributed the lower shelf directly to MiCA. The framework requires stable currency issuers and encryption service providers operating in the EU to meet licensing, storage, information disclosure and regulatory requirements.

Previous reports indicate that USDT has not been authorized by the MiCA. The CEO of Tether, Paolo Ardoino, has stated that the requirements related to MiCA ' s reserves are not suitable for the largest stabilization currency on a global scale and has questioned the composition of reserves, liquidity management and the risk of redemption.

With the completion of the implementation measures on 1 July, Revolut has joined the platform that restricts the use of USDT by European clients. The European stable currency market has thus become more concentrated in mandated products.

Tether faces other compliance pressures at the same time.

In parallel to the tightening of European regulation, Tether has recently received attention for the implementation of sanctions. It was reported that the company had recently frozen USDT balances of 131 wallets in the Tron chain.

This action is related to the updating of the sanctions list by the Office of Overseas Assets Control (OFAC) of the United States Treasury Department. On 1 July, OFAC added 134 encrypted wallets, including 131 Tron and 3 Monero addresses, to which ISIS-K related.