Binance, one of the largest cryptocurrency exchanges, has stopped trading USDT and other stablecoins in the European Economic Area (EEA) as part of its compliance with the new MiCA regulation.
Details of Binance's Action
On March 3rd, the exchange officially informed users about the planned delisting, setting a deadline of March 31 for non-MiCA-compliant tokens. Despite the removal of these trading pairs, users in the EEA can still hold and trade the affected stablecoins through perpetual contracts. In addition to USDT, Binance also halted trading for stablecoins like Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and PAX Gold.
Other Exchanges Follow Suit
Following Binance's lead, Kraken also delisted USDT and other stablecoins in the EEA to comply with MiCA. The delisted stablecoins on Kraken include PayPal USD (PYUSD), Tether EURt (EURT), and TrueUSD (TUSD). Meanwhile, Coinbase had previously delisted USDT in anticipation of MiCA's impact, while a few other crypto exchanges continue to trade the token as they await further regulatory updates.
Impact on the Crypto Market
The removal of Tether's flagship stablecoin, USDT, could affect market liquidity in Europe, making transactions slower and increasing costs for traders. Many investors are concerned about whether alternative stablecoins can provide the same level of reliability as USDT.
The decision by Binance and other major exchanges to comply with MiCA leads to significant changes in the European cryptocurrency market. This may affect liquidity and the reliability of trading operations, causing concerns among traders.
