Is USDT banned in the EU?

MiCA does not name USDT or ban any single token. ESMA's statement of 17 January 2025 told supervisors to ensure that licensed providers stop offering stablecoins that do not meet MiCA rules by the end of Q1 2025. Platforms then decided for themselves which tokens that covered.

Can I still hold USDT in my own wallet?

The ESMA statement concerns services offered by crypto-asset service providers. It says that mere custody and transfer of non-compliant tokens should remain possible. Holding tokens in a wallet you control is not a service offered to you by a provider.

What did Bitstamp do with USDT?

Bitstamp disabled USDT trading for customers of Bitstamp Europe S.A. in January 2025, stopped USDT deposits and withdrawals on 5 May 2025 and converted remaining balances to USDC on 6 May 2025, citing MiCA.

What is the difference between USDT and USDC?

Both track the US dollar, but they have different issuers, reserves and regulatory status in the EU. USDC is issued in the EU by a French e-money institution under MiCA. USDT's issuer is not listed in ESMA's e-money token register.

On which networks does USDT run?

Tether lists networks including Ethereum, Solana, Tron, TON and Algorand. Tether warns users to check that they pick the correct network, because USDT sent on one network does not arrive on another.

USDT (Tether)

By xChange.bg team
Published 16 September 2026

USDT is the dollar stablecoin issued by Tether. It trades on exchanges around the world, which is why clients outside the EU often ask to pay in it.

How USDT works

Tether issues and redeems USDT through accounts on its own platform, while most people buy and sell the token on exchanges. Tether states that all tokens are pegged 1:1 to the dollar and backed by its reserves. According to Tether's own FAQ, those reserves include traditional currency and cash equivalents, and also other assets, including receivables from loans that Tether has made to third parties. Tether publishes circulation figures daily and reserve information on a quarterly basis.

USDT exists on many blockchains, including Ethereum, Solana, Tron and TON. Each version lives only on its own network, so the sender and the receiver must use the same one. See blockchain network.

USDT and MiCA

Under MiCA, a stablecoin that tracks one official currency is an e-money token. Only an authorised bank or electronic money institution may offer it to the public in the EU, and it needs a white paper notified to a supervisor. On 16 September 2026, ESMA's interim register of e-money token white papers had no entry for USDT or for Tether.

The rules for stablecoins have applied since 30 June 2024. On 17 January 2025 ESMA published a statement asking national supervisors to make sure that crypto-asset service providers stop offering non-compliant stablecoins as soon as possible, and by the end of the first quarter of 2025 at the latest. The statement does not name any token. It also says that mere custody and transfer of such tokens should remain possible.

Platforms applied this to their own lists. Bitstamp, for example, disabled USDT trading for its EEA customers in January 2025 and converted the remaining balances to USDC in May 2025.

Example

A Bulgarian consultant is paid USD 1,500 in USDT on the Tron network by a client in Dubai. To use that money in Bulgaria she needs a wallet that supports Tron and a platform willing to exchange USDT. If her EU platform no longer lists USDT, she may have to swap it into another stablecoin first, paying a spread and network fees. Asking the client to pay in USDC on a network her wallet supports, or by wire to a USD account in her own name, avoids that extra step.

Common confusion

Delisted is not the same as banned. The ESMA statement is about what licensed providers offer, and it keeps custody and transfer possible.
"Backed 100%" does not mean the same reserves as USDC. Read each issuer's reserve reports and compare what the assets are.
USDT on Tron is not USDT on Ethereum. If you send on a network the receiving wallet does not use, the funds may not arrive where you expect.

Frequently asked questions

Is USDT banned in the EU?: MiCA does not name USDT or ban any single token. ESMA's statement of 17 January 2025 told supervisors to ensure that licensed providers stop offering stablecoins that do not meet MiCA rules by the end of Q1 2025. Platforms then decided for themselves which tokens that covered.
Can I still hold USDT in my own wallet?: The ESMA statement concerns services offered by crypto-asset service providers. It says that mere custody and transfer of non-compliant tokens should remain possible. Holding tokens in a wallet you control is not a service offered to you by a provider.
What did Bitstamp do with USDT?: Bitstamp disabled USDT trading for customers of Bitstamp Europe S.A. in January 2025, stopped USDT deposits and withdrawals on 5 May 2025 and converted remaining balances to USDC on 6 May 2025, citing MiCA.
What is the difference between USDT and USDC?: Both track the US dollar, but they have different issuers, reserves and regulatory status in the EU. USDC is issued in the EU by a French e-money institution under MiCA. USDT's issuer is not listed in ESMA's e-money token register.
On which networks does USDT run?: Tether lists networks including Ethereum, Solana, Tron, TON and Algorand. Tether warns users to check that they pick the correct network, because USDT sent on one network does not arrive on another.