The move is a result of changing regulations guiding crypto activity in the EU
Binance has removed Tether’s USDT trading pairs in the European Economic Area (EEA) as part of its efforts to comply with the Markets in Crypto-Assets Regulation (MiCA). The decision is part of a broader initiative to align with regulatory standards, impacting several non-MiCA-compliant stablecoins on the platform.
Despite the removal of USDT spot trading pairs, Binance users in the EEA can still hold and transfer the stablecoin. Perpetual contract trading also remains available, allowing traders to continue engaging with USDT through derivative markets.
Binance had previously announced its plan to delist non-compliant tokens by March 31, following MiCA’s directive to phase out such assets before the first quarter of 2025 ends.
Binance is not the only exchange making adjustments to its offerings in response to MiCA regulations. Kraken also restricted USDT trading in the EEA, moving the stablecoin to a sell-only mode on March 24. The exchange has additionally delisted other non-compliant tokens, including PayPal USD, Tether EURt, and TerraClassicUSD.
Other stablecoins affected by Binance’s delistings include Dai, First Digital USD, TrueUSD, Pax Dollar, Anchored Euro, and PAX Gold. The European Securities and Markets Authority (ESMA) has stated that while trading these stablecoins must be halted, their custody and transfer remain permissible.
However, previous guidance from ESMA also suggested that all transactions involving non-compliant tokens should cease after March 31, leading to uncertainty among market participants.
The changes highlight the impact of MiCA regulations on stablecoin trading in Europe, pushing major exchanges to reassess their offerings. While some services remain accessible, the restrictions on spot trading indicate a shift in the European crypto landscape as firms adjust to evolving regulatory requirements.
