Revolut Removes Tether USDT: Regulatory Impact

Revolut Removes Tether USDT: Impact of Regulation on Stablecoins

5 July 2026 on 20: 51

Reading time: 2 minutes

Revolut, the crypto-friendly digital banking platform from the United Kingdom, has informed some of its users that it is cancelling the popular stablecoin Tether. USDt (USDT) will be scrapped in August. The reason: regulatory concerns and risks. This decision illustrates the broader trend in which leading fintech companies are reconsidering their access to stablecoins in light of changing regulatory frameworks.

Users who do not sell or withdraw their USDT until the end of August will see their remaining holdings automatically converted to their account's base currency at the exchange rate of that day. With the announcement that USDT deposits will no longer be supported after July 30, 2026, it is clear that Revolut wishes to clarify its position and thereby minimize potential risks.

It is striking that Revolut does not specify whether the delisting of USDT will apply globally or only in certain jurisdictions. In explaining the reasons for scrapping USDT, the company refers vaguely to “regulatory and risk conditions” without explaining in detail which specific regulations prompted this decision.

In November 2025, Revolut received a MiCA license as a crypto asset service provider (CASP), issued by the Cyprus Securities and Exchange Commission (CySEC), as confirmed by the official register of the European Securities and Markets Authority (ESMA). This license reflects the need for companies to adapt to new European legislation but also raises questions regarding coherence and transparency within crypto regulations.

Tether's USDT has been gradually withdrawn from circulation by various CASPs in Europe since late 2024, primarily because the issuer of this stablecoin refused to comply with EU rules, particularly the MiCA regulations. Tether's CEO, Paolo Ardoino, has repeatedly voiced his criticism regarding the alleged shortcomings of MiCA, such as the reserve requirements applicable to certain stablecoin issuers. These requirements stipulate that a portion of reserves must be held at European credit institutions.

Tether, with a market capitalization of approximately $184 billion, is currently the third largest crypto asset after Bitcoin and Ether. Compared to its biggest competitor, Circle's USDC, which has a market capitalization of $73 billion and is the fifth largest crypto asset, Tether positions itself in a vulnerable position as regulations evolve.

Frequently Asked Questions

What impact does the delisting of USDT have on Revolut users?
Users will need to sell or withdraw their USDT before the August deadline. After this date, untransformed holdings will be automatically converted to their base currency, which could result in unforeseen losses if the price fluctuates.

Why hasn't Tether adapted to the new European regulations?
Tether has expressed reservations regarding the obligations attached to the MiCA rules, such as the reserve requirements, which, according to Ardoino, are unrealistic and problematic for their business model.

What does this mean for the future of stablecoins in Europe?
The ongoing review and adjustment of stablecoin regulations in Europe could lead to further market consolidation, where only those who adapt to the regulations will survive, while others may disappear or be restricted in their activities.

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