Binance will delist several stablecoins in the European Economic Area (EEA) to align with the Markets in Crypto-Assets Regulation (MiCA).
The exchange will remove spot trading pairs for EEA users, affecting nine stablecoins, including Tether’s USDT and Dai.
Binance announced the decision on March 3 as part of its compliance measures with the new European regulations.
In January, the European Securities and Markets Authority (ESMA), a key MiCA compliance supervisor, called on European crypto asset service providers to fully delist non-compliant tokens by March 31, 2025.
What will change for Binance users?
MiCA, which is a broad, overarching regulatory framework, establishes stringent criteria for stablecoin issuers in the EU to enhance consumer protection and market integrity.
Binance has opted to remove stablecoin trading pairs that do not comply with MiCA requirements.
More specifically, USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC, and PAXG are among the stablecoins being delisted.
Binance clarified that despite the removal of trading pairs, users in the EEA can still deposit, withdraw, and convert non-MiCA-compliant stablecoins through Binance Convert.
Binance encourages clients to migrate to MiCA-aligned stablecoins in anticipation of future developments.
Circle’s USD Coin (USDC) and Eurite Euro Token (EURI) are accepted alternatives that meet MiCA requirements.
Support for fiat currencies such as the Euro (EUR) will also continue.
Before the March 31 deadline, users should exchange their non-compliant stablecoin holdings for permitted alternatives.
The update will also affect margin trading. Starting March 27, Binance will remove non-compliant margin trading pairs and automatically convert any remaining assets to USDC.
The exchange advised users to convert their margin assets before the deadline to avoid liquidation risks.
It also recommended users update their Binance Earn and Loan holdings to compliant stablecoins.
To facilitate the transition to MiCA-compliant stablecoins, Binance will offer zero-fee trading on select pairs and incentives for trading USDC or EURI.
It also recommended users update their Binance Earn and Loan holdings to compliant stablecoins.
Crypto industry complying with MiCA
Binance is not the only company that has made changes to comply with the EU’s evolving cryptocurrency regulations.
Other popular exchanges, including Coinbase, Kraken, and Crypto.com have also announced similar changes.
Such action taken in coordination demonstrates that the cryptocurrency industry is serious about preparing for MiCA compliance.
The MiCA regulations, which took full effect on December 30, 2024, are designed to establish a comprehensive legal framework for crypto-assets across the European Union, aiming to enhance consumer protection and market integrity.
However, the full implementation of MiCA is still ongoing.
MiCA could spur greater adoption of MiCA-licensed alternatives to USDC and EURI, but some stablecoins may suffer from falling demand in Europe.
This is meant to not only protect consumers better but also to establish a more transparent and accountable digital asset market in the European Union.
Binance’s announcement follows its ongoing efforts to secure a MiCA license.
In January 2025, the exchange adjusted its deposit and withdrawal procedures in Poland to align with the MiCA framework.
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