Binance Delists USDT and Other Non-MiCA Tokens in Europe Under MiCA

Binance has officially discontinued spot trading pairs involving Tether’s USDT and several other non-MiCA-compliant tokens in the European Economic Area (EEA). The move is part of the exchange’s efforts to comply with the MiCA, which imposes strict guidelines on stablecoins and digital asset services in the region.

The decision, which aligns with Binance’s prior announcements in March, marks a significant shift for traders in the EEA. While spot trading pairs have been removed, Binance users in the region can still hold and transfer these tokens and continue trading them through perpetual contracts.

Other notable tokens affected by Binance’s delisting include Dai (DAI), TrueUSD (TUSD), Pax Dollar (USDP), and TerraUSD (UST), among others. The exchange had set March 31 as the deadline for phasing out these assets from spot trading in accordance with MiCA’s stablecoin restrictions.

Kraken also Adjusts to MiCA Rules

Binance is not alone in making these regulatory-driven changes. Kraken, another major crypto exchange, has also moved to delist USDT spot trading in the EEA. The exchange announced in February that it would restrict Tether trading to “sell-only” mode for EEA users starting March 24—effectively barring them from buying USDT and other non-compliant stablecoins.

While Binance’s delisting covers a broader range of assets, Kraken’s removal list includes USDT, PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (USTC).

Despite removing these tokens from spot trading, both Binance and Kraken will continue offering custody and transfer services for them.

This approach is in line with guidance from the European Securities and Markets Authority (ESMA), which clarified that holding and transferring such tokens does not violate MiCA’s framework.

Regulatory Confusion Clouds Stablecoin Compliance

The evolving MiCA regulations have led to confusion among European crypto firms. While the ESMA has stated that custody and transfers remain legal, it has also advised crypto service providers to halt all transactions involving non-MiCA-compliant stablecoins after March 31.

This regulatory gray area has left many exchanges navigating uncertain compliance standards as they work to align their operations with European laws.

As Europe adopts new regulations, it remains to be seen how Binance, Kraken, and other platforms will adapt to the full implementation of MiCA.

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