Revolut Gives Tether the August 31st Ultimatum — MiCA Clock's Ticking 🕰️

Revolut will delist Tether's USDT for European users on August 31, 2026 at 12:00 PM GMT, the fintech firm confirmed in customer notices and a July 3 post on X, citing "regulatory and risk considerations." The decision comes after Tether opted not to seek authorization under the European Union's Markets in Crypto-Assets (MiCA) framework, which moved into full enforcement on July 1. Revolut, which serves more than 75 million customers and built a $75 billion valuation, did not clarify whether the delisting applies only to EU users or to its full global base; the company did not respond to a request for comment before publication.

The wind-down follows a staged timeline. Customers can continue buying USDT until July 6, after which purchases are disabled. New USDT deposits will be rejected starting July 30, 2026. Until August 31, users may sell their tokens or transfer them to supported external crypto wallets. Any USDT remaining after the August 31 deadline will be automatically converted into the base fiat currency linked to the user's account at prevailing exchange rates. Revolut was granted a MiCA license as a crypto-asset service provider (CASP) in November 2025 by the Cyprus Securities and Exchange Commission (CySEC), according to the European Securities and Markets Authority's official register, and the regulator's licensed-provider list has since expanded to 280 firms. Tether is not among them.

Tether CEO Paolo Ardoino has been openly critical of MiCA's reserve requirements, which mandate that significant stablecoin issuers hold at least 60% of reserves as bank deposits. "I think it's a very not well thought legislation," Ardoino told Cointelegraph in an interview last year, adding that "the problem I have with MiCA is that it's very dangerous for stablecoins" because a 20% redemption on USDT could quickly stress smaller European banks that accept crypto clients. Tether already retired its euro-pegged EURT stablecoin in November 2024 rather than bring it into compliance. Ardoino said in an April 2025 interview that the firm was still seeking a top-tier audit partner, noting that major accounting firms remain cautious about stablecoin clients following crypto exchange failures and hacks. Consumers' Research criticized the issuer in a recent letter to U.S. governors, stating that "Tether's continual failure to undergo an independent audit raises a distressing red flag for the company and its USDT product."

The delisting strengthens the position of Circle's USDC, which holds MiCA authorization and remains listed on regulated European venues. Visa data showed USDC recorded $1.21 trillion in transfer volume in June, more than double Tether's volume for the month and second only to February's record $1.28 trillion. Euro-pegged stablecoin volumes grew roughly elevenfold in the same period while USD-based stablecoin volumes shrank. Despite the European retreat, USDT remains the third-largest crypto asset by market capitalization at $184 billion, behind Bitcoin and Ether, with USDC ranked fifth at $73 billion, according to CoinGecko.