Binance delists Tether’s USDT in Europe under MiCA rules

Binance is set to delist all stablecoin trading pairs that fail to meet the European Union’s Markets in Crypto-Assets (MiCA) compliance standards.

The move is set for March 31 and will impact users in the European Economic Area (EEA), the exchange announced Monday.

Nine stablecoins will be affected, including Tether (USDT), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Dai (DAI), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and Paxos Gold (PAXG). However, Binance users in the EEA will still be able to deposit, withdraw, and convert these assets via Binance Convert. Custody services for non-compliant stablecoins will also remain available.

MiCA-compliant stablecoins, such as Circle’s USD Coin (USDC) and Eurite Euro Token (EURI), along with fiat trading pairs, will remain unaffected. Binance is encouraging users to convert their non-compliant stablecoins to approved assets before the deadline.

Binance isn’t alone in adapting to MiCA’s new framework. Tether has already been excluded from the list of approved stablecoin issuers and major exchanges like Kraken and Crypto.com are preparing to delist USDT and other non-compliant stablecoins in the European market in the coming months.

Tether CEO Paolo Ardoino claimed last month that both competitors and political forces are actively working to push Tether out of the market. He accused rivals of prioritizing efforts to “kill Tether” over improving their own products.

MiCA, which took full effect on Dec. 30, 2024, is designed to provide a legal framework for crypto-assets across the EU, focusing on consumer protection and market integrity. However, the full regulatory rollout is still ongoing, with Level 2 and Level 3 measures, such as delegated acts and implementation guidelines, yet to be finalized.

Under the approved MiCA regulation, platforms operating in the European Union will have an obligation to provide consumers with clear and comprehensive information about the risks associated with their services.

Meanwhile, stablecoin issuers will be required to maintain sufficient reserves to back their stablecoins and ensure they can meet redemption requests in the event of mass withdrawals.

Additionally, if a stablecoin reaches a significant size, it may be subject to further restrictions. Specifically, stablecoins that exceed a certain threshold may be limited to conducting transactions of up to 200 million euros ($220 million) per day. This limitation is likely implemented to address concerns related to financial stability and systemic risk.