Binance has removed Tether’s USDt and eight other stablecoins from spot trading in the European Economic Area, citing compliance with the European Union’s Markets in Crypto-Assets Regulation, or MiCA. The move took effect March 31 and directly impacts EEA users’ ability to trade with the market’s most widely used stablecoin.
The change does not affect users’ ability to custody or withdraw the affected stablecoins. According to Binance, users may continue to deposit and hold tokens like Tether, but will no longer be able to use them in products or services on the platform.
“EEA users will still be able to hold and deposit non-MiCA-compliant stablecoins and will be able to convert them to MiCA-compliant stablecoins or withdraw them,” – Binance spokesperson
The delisted tokens include Tether’s USDt, Dai, First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and PAX Gold (PAXG). Binance users in the EEA can still convert these stablecoins to compliant alternatives like USDC or EURI through Binance Convert.
Regulatory Compliance and Market Access
MiCA aims to regulate digital assets in the European Union, requiring stablecoins to meet new compliance standards. The European Securities and Markets Authority (ESMA) instructed service providers to remove non-compliant tokens by March 31, 2025. However, Binance’s early removal of these assets from spot trading preempts the regulatory deadline.
Binance has not yet received its MiCA license and declined to comment on whether the new rules will force a full delisting of the non-compliant tokens once the license is obtained.
While spot trading has ceased, Binance continues to offer perpetual contract trading for tokens such as USDT. This means users can still engage in derivatives trading involving the affected stablecoins, despite their absence from spot markets.
Industry-Wide Adjustments
Other exchanges are making similar adjustments. Kraken began phasing out support for USDT and four other stablecoins in the EEA earlier this year. The exchange moved to a sell-only mode for USDT by March 24 and plans to fully convert all affected tokens to compliant assets by March 31, 2025. “All remaining EEA client holdings for these assets as of March 31, 2025, will be converted to an equivalent stablecoin,” Kraken stated.
Crypto.com also announced delistings of USDT and nine other stablecoins, giving users until the end of Q1 2025 to convert them. After that date, holdings will be automatically switched to a compliant stablecoin or equivalent asset.
Despite varying timelines, the exchanges’ responses reflect ESMA’s push for a coordinated approach. The regulator has emphasized a gradual transition to avoid market disruptions, warning that “sudden actions” could lead to disorderly conditions.
With MiCA enforcement underway and license deadlines approaching, crypto service providers across Europe face mounting pressure to align their offerings, or risk losing access to one of the world’s largest financial markets.
