Binance will remove support for USD Tether (USDT) and eight other non-MiCA-compliant stablecoins for users in the European Economic Area (EEA).
The move, announced in a blog post, is in response to the latest guidelines from European Union (EU) authorities on stablecoins.
The exchange notes that it is seeking to comply with regulatory requirements, which entails changes to the availability of non-MiCA-compliant stablecoins in the EEA. Those affected include USDT , FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC, and PAXG.
Binance recommends that EU users convert their holdings in these currencies to USD Coin (USDC) or EURI as soon as possible. USDC is the stablecoin issued by the Circle company, and is currently the second most valued stablecoin on the market. In 2024 alone, this asset surpassed USDT in terms of circulating coins. EURI, on the other hand, is a stablecoin developed by Banking Circle SA, a financial institution based in Luxembourg.
The delisting of USDT, issued by Tether Limited, as well as the other 8 stablecoins mentioned above, will become effective on March 31, 2025, at 11:59 PM UTC. From that point on, Binance will restrict spot trading pairs with non-MiCA-compliant stablecoins for EEA users. However, the exchange specifies that the sale of remaining holdings of these stablecoins will still be available through Binance Convert.
Additionally, all trading orders will be automatically cancelled upon cessation of trading on each affected pair. Trading bot services for those spot pairs will also be suspended.
Binance clarifies that MiCA -compliant pairs such as USDC and EURI, stablecoins that received approval to operate in the EU under that regulation months ago, will remain available without changes. Custody of non-compliant stablecoins will continue to be active, allowing users to withdraw them at any time.
To encourage migration to USDC, the exchange is offering promotions to EEA users. These include zero fees for BNB/USDC, ETH/USDC, and SOL/USDC pairs, a reduced fee for participants in USDC spot and margin trading pairs, and the chance to earn a share of one million USDC when buying and trading this stablecoin.
MiCA, or Markets in Cryptoassets Regulation, is a European Union regulation governing cryptoassets, including stablecoins. It came into force on December 30, 2024, to establish issuance and operation standards, requiring stablecoins to meet requirements such as sufficient reserves and transparency in their management.
Stablecoins like USDT, which currently dominates 63.5% of the stablecoin market and has a market cap of $142 billion, face limitations under MiCA regulations for not fully complying with these rules. USDT, the most valued stablecoin on the market, has lost ground in Europe due to this regulation. The regulation seeks to protect consumers and guarantee financial stability, but imposes restrictions that make it difficult for certain stablecoins to operate.
Binance's decision directly affects USDT, which dominates the market with a capitalization higher than other stablecoins. Exchanges such as Kraken, Coinbase and OKX have already announced the delisting of USDT in the EU, according to this media. Binance joins this trend, aligning itself with the regulatory requirements of the region.
The exit of USDT from these platforms reflects the impact of MiCA on the European cryptocurrency ecosystem. As the regulation is enforced, unregulated stablecoins face a more hostile environment, while options such as USDC, backed by Circle and compatible with MiCA, gain relevance.
EEA users have until the end of this month to adjust their strategies. The removal of trading pairs and the cancellation of associated services are firm measures, but Binance's promotions aim to facilitate the transition. The exchange is committed to maintaining its user base in the region, adapting to a landscape that is evolving under the scrutiny of European regulators.
