EU regulator sets January 2027 deadline for crypto firms to drop Tether’s USDT

Crypto service providers that hold or move non-compliant stablecoins are the firms most directly affected, because they now face a January 2027 remediation date for legacy client exposures. Users with existing balances or service relationships tied to those assets will notice the change when firms alter what they can support, move, or keep on platform.

Before this, the rules had not been described as reaching as far across business lines; now the scope includes trading, custody, transfers, and investment services. What still remains is a temporary path for withdrawals and conversions of non-compliant stablecoins, so the practical shift is a tighter framework rather than a total shutoff. (per thecoinrepublic.com)

It is still not clear from the guidance whether the same approach will be applied uniformly across all national regulators or how each will handle legacy exposures in practice. The open question is how broadly the January 2027 deadline will be implemented and what forms of temporary relief, if any, will be used under it.