Binance has adjusted its trading activities in Europe, ending USDT and other non-MiCA-compliant tokens spot trading to adhere to new regulations.
Changes for Binance Users in Europe
Binance has officially ended spot trading pairs involving Tether’s USDT and several non-MiCA-compliant tokens in the European Economic Area. This move is part of the exchange’s effort to comply with MiCA's strict guidelines on stablecoins and digital asset services in the region. This decision marks a significant shift for traders in the EEA; however, Binance users there can still hold and transfer these tokens and trade them via perpetual contracts.
Kraken Also Adheres to MiCA
Another major crypto exchange, Kraken, has also initiated changes by ceasing USDT spot trading in the EEA. The exchange announced a 'sell-only' mode for EEA users starting March 24, effectively preventing them from buying USDT and other non-compliant stablecoins. Despite removing these tokens from spot trading, both Binance and Kraken will continue offering custody and transfer services for these assets.
Regulatory Confusion and Stablecoin Future
The evolving MiCA regulations have caused confusion among European crypto firms. While ESMA clarified that custody and transfers are legal, it also advised halting all transactions involving non-compliant stablecoins after March 31. This regulatory gray area leaves many exchanges balancing on the edge to align with European laws.
The adoption of new MiCA regulations in Europe poses challenges for crypto platforms. Time will tell how well Binance, Kraken, and others will adapt to these changes.
