We Will Discontinue 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. As such, we will discontinue the support for USDT in the coming months, in line with regulatory requirements. The same goes for DAI.

What’s Changing and When?

We plan to stop supporting non-compliant stablecoins on the CoinGate platform by March 31, 2025.

This change concerns USDT and DAI only, which have not achieved MiCA compliance as of today. 

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

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)

• Shoppers won’t be able to pay invoices with USDT. We expect most shoppers will switch organically to USDC, and we highly recommend merchants advise customers to do so sooner. USDC is a compliant alternative supported by virtually all exchanges and DeFi protocols, with minimal burden on shoppers.
• Converting USDT into other currencies will no longer be supported (i.e., you won’t be able to sell USDT).
• Customers willing to continue accepting shopper payments in USDT (with no currency conversion), must contact CoinGate support to be added to approved merchant list for USDT withdrawals.
• Deposited USDT will be available only for withdrawal or payouts in USDT.

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

For new customers

Customers willing to accept shopper payments in USDT (with no currency conversion), must add payout setting in USDT and contact CoinGate support to be added to approved merchant list for USDT withdrawals.

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.