Binance has announced that it will delist nine stablecoins, including USDT (Tether), for users in the European Economic Area (EEA) in compliance with the European Union’s MiCA (Markets in Crypto-Assets Regulation) framework. The delisting will take effect on March 31, 2025, making non-MiCA-compliant stablecoins unavailable on the platform.
MiCA Regulations and Binance’s Compliance Strategy
In an official statement, Binance emphasized:
“The EU’s new MiCA regulations will significantly impact the stablecoin market within the EEA region. Binance is offering various promotions to help users adapt to these changes while preparing to delist non-MiCA-compliant stablecoins. Users should review and restructure their stablecoin holdings before the specified deadlines.”
Which Stablecoins Will Be Delisted?
Binance will remove the following nine stablecoins:
- USDT (Tether)
- FDUSD (First Digital USD)
- TUSD (TrueUSD)
- USDP (Pax Dollar)
- DAI (Dai Stablecoin)
- AEUR (Anchored Euro)
- UST (TerraClassicUSD)
- USTC (TerraClassicUSD Classic)
- PAXG (Paxos Gold)
As of March 31, 2025, these assets will be removed from Binance, and their spot trading pairs will no longer be available.
MiCA-Compliant Stablecoins Will Remain Available
Stablecoins that comply with MiCA, such as USDC and EURI, will continue to be available, along with fiat currencies like EUR. Binance advises users to convert their non-compliant stablecoins into USDC, EURI, or EUR before the delisting date. However, users will still be allowed to hold, deposit, and withdraw these assets after the deadline.
Impact of MiCA on Spot Trading
- On March 31, 2025, at 23:59 UTC, Binance will delist all spot trading pairs involving non-MiCA-compliant stablecoins.
- Until then, users can continue trading these stablecoins.
- Binance Convert will still support selling these stablecoins, and all open spot trading orders will be canceled within 48 hours after the deadline.
How Will Conversions Work?
- USDT and FDUSD will be converted at a 1:1 ratio.
- USDP, DAI, AEUR, USTC, and PAXG will be converted to USDC based on the opening price on March 27, 2025.
Trading Restrictions and Automated Trading Bots
- Non-compliant stablecoins will only be tradable via Binance Convert after March 31, 2025.
- Users in Binance Simple Earn and Dual Investment are encouraged to move their funds into MiCA-compliant stablecoins before the deadline.
- Binance will disable trading bots for delisted stablecoins on March 31, 2025, at 03:00 UTC.
Why Didn’t Tether (USDT) Comply with MiCA?
Several factors contributed to Tether’s decision not to comply with MiCA:
- Operational Model:
- Tether has faced criticism over transparency regarding its reserves.
- MiCA compliance would require major changes in reserve management and increased transparency.
- Strategic Focus:
- Tether prioritizes markets like Latin America and Asia, where regulatory pressure is lower.
- Cost vs. Benefit:
- Given USDT’s strong position outside the EU, MiCA compliance may not be financially beneficial for Tether.
Potential Impact on EU Crypto Markets
- Liquidity & Volatility:
- Removing USDT could lead to reduced liquidity and increased volatility in EU crypto markets.
- Shift to Alternatives:
- USDC (by Circle) may gain market share in the EU.
- The adoption of Euro-backed stablecoins could enhance regional financial independence.
- Institutional Confidence:
- MiCA provides a clear regulatory framework, making the EU more attractive to institutional investors.
- Although the removal of USDT may cause short-term instability, long-term regulatory clarity could stabilize the market.
Opportunities for Euro Stablecoins
The withdrawal of USDT from the EU market presents growth opportunities for Euro-backed stablecoins, such as:
✔ Strengthening the EU’s digital finance sector
✔ Reducing dependence on USD-pegged stablecoins
✔ Encouraging innovation in Web3 and DeFi applications for European users
The MiCA regulations mark a major shift in Europe’s stablecoin landscape, paving the way for a more regulated and transparent crypto ecosystem.
Source: CNBC-e/ Prepared by: İlayda Gök