We Will Limit USDT & DAI Support—Here’s When & Why

The European Union’s Markets in Crypto-Assets (MiCA) regulatory framework has changed the rules of the game for stablecoins. Now, under MiCA, stablecoin issuers must meet certain compliance standards.

At this time, Tether, the issuer of USDT, has not yet taken the steps needed to meet these rules. This is why we will limit the support for USDT payments in the coming months, in line with regulatory requirements, while DAI will be discontinued.

However, we will continue to support USDC, and we expect it to become the predominant stablecoin in the short term.

What’s Changing and When?

These changes will roll out in two phases.

From February 26:

• DAI support will be discontinued across all CoinGate services.
• You won’t be able to convert other currencies into USDT in your CoinGate account dashboard anymore (i.e., you won’t be able to buy USDT).
• You won’t be able to use USDT as your settlement currency (referred to as “receive currency” in the API). For any APIs or integrations still using USDT as the settlement currency on February 26, we’ll automatically change it to USDC. We encourage merchants to make the switch sooner, either to USDC (the only widely supported EU-compliant stablecoin) or to EUR/BTC as preferred.
• You won’t be able to make refunds in USDT unless you have an existing USDT balance in your CoinGate account. However, merchants can make refunds for orders originally paid in USDT using USDC or other cryptocurrencies.

Apart from the above, USDT will continue to work as usual until March 23, when the following changes take effect:

From March 23: (UPDATED)

• Converting USDT into other currencies will no longer be supported (i.e., you will not be able to convert USDT).
• Deposited USDT will be available only for withdrawals or payouts.

On March 24, 2025, we will convert all remaining USDT balances into USDC at a 1:1 rate.

Our team expects that most shoppers will switch to USDC organically, and we highly recommend merchants to advise customers to do so sooner. USDC is a compliant alternative supported by virtually all exchanges and DeFi protocols, with minimal burden on shoppers.

If You Wish to Continue Accepting USDT Payments

CoinGate still supports USDT payments, but they are disabled by dafault. To enable USDT payments for your shoppers, you must first contact CoinGate support and provide a USDT payout address to be added to approved by our team.

Note that, when accepting USDT, conversions to EUR, USD or cryptocurrencies will no longer be available.

Accept	🟠Only acceptance without conversion is possible. To enable this option, please contact support.
Deposit	🟢Enabled
Convert	🔴Disabled
Withdraw	🟢Enabled
Send	🟠Only sending without conversion is possible.
Void Refund	🟢Enabled
Merchant Refund	⚠️Currently under maintenance. Will be re-enabled with no conversion option.

USDC Steps Up in Europe

Meanwhile, USDC—issued by Circle—achieved MiCA compliance in the summer of 2024 and is fully available at CoinGate. Specifically:

• Payments: USDC payments are supported on Ethereum, Arbitrum, and Solana networks.
• Deposits: You can deposit USDC using Ethereum, BSC, Tron, and Polygon networks.
• Other services: Feel free to use USDC for our currency exchange or payout services.

Don’t have an account at CoinGate yet? Sign up.

We’ll continue to expand our stablecoin offerings in the future, once the regulatory landscape becomes clearer.

Stablecoin Regulation in the US

In addition to MiCA, all eyes are on the proposed stablecoin oversight bill introduced by U.S. Senator Bill Hagerty. If passed, it would:

• Clearly define stablecoins.
• Introduce licensing requirements for issuers.
• Require stablecoins to be backed by tangible, liquid assets (like U.S. currency, Treasury bills, and other secure instruments).
• Demand monthly audited reserve reports, with criminal penalties for false reporting.
• And much more.

This push for regulatory clarity in the United States could have a big impact on stablecoins globally. If US-based stablecoin issuers comply, we may see them re-enter the European market at some point—potentially changing the game once again.

Stablecoins Are Here to Stay

After all, stablecoins have already proven their usefulness. According to the report from Ark Invest, stablecoin transaction value surpassed Visa and Mastercard in 2024, reaching $15.6 trillion. 

They’ve also solidified their role at CoinGate. As we outlined in our yearly data report, stablecoins accounted for 35.5% of all payments in 2024 alone.

Whether you’re a merchant or a crypto enthusiast, stablecoins remain one of the most efficient, reliable, and in-demand payment methods out there. We look forward to supporting more stablecoin options as they become fully compliant in the EU and the global stage. 

But why wait? If you want to introduce stablecoins into your business, sign up for a CoinGate account today and start right away.