Revolut Phases Out USDT for European and UK Customers Amid Regulatory Review

Revolut has announced it will delist Tether’s USDT stablecoin for millions of customers across the European Economic Area (EEA) and the United Kingdom, citing “regulatory and risk considerations.” The move marks a significant escalation in the fallout from Tether’s non-compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation, threatening the stablecoin’s access to a massive user base.

USDT Delisting from Revolut

Headquartered in the UK, Revolut operates across 30 EEA countries, 27 of which fall under the EU’s regulatory perimeter. The digital banking platform notified users on Friday that it will cease supporting USDT entirely by August 31. To ensure an orderly transition, the firm will halt USDT purchases starting July 6.

According to the notice, Revolut will automatically convert any remaining USDT holdings into users’ base currencies by the August deadline. The company has urged customers to convert, sell, or withdraw their holdings prior to that date. Revolut currently serves 75 million customers globally and recently launched UK banking services protected by the Financial Services Compensation Scheme (FSCS).

Reason for the Move

Revolut attributed the decision to a “regular review” of its token offerings, stating the action was driven by “regulatory and risk considerations.”

“To provide a secure, transparent, and responsible trading experience, we regularly review the tokens available on our platform and may adjust our selection,” the company wrote in its customer advisory. “Based on regulatory and risk considerations, we’ve decided to remove USDT from our offering.”

Notably, the delisting extends to Revolut’s UK operations, which are not directly bound by MiCA. Although the firm did not explicitly cite the EU regulation in its announcement, market observers widely interpret the decision as an alignment with the stricter compliance standards emerging under the MiCA framework.

Tether’s Response

Tether has not yet issued a specific response regarding the Revolut delisting. However, CEO Paolo Ardoino has previously maintained a firm stance against seeking MiCA authorization, arguing that the regulation’s reserve requirements for stablecoins are “dangerous” and represent poorly conceived legislation.

MiCA mandates that stablecoin issuers maintain 1:1 asset reserves, strict liquidity buffers, and authorization as a credit institution or Electronic Money Institution (EMI). The framework also prohibits yield payments on stablecoins, requires 24/7 redemption capabilities, and places issuers under the supervision of national authorities or the European Banking Authority (EBA).

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