Cryptocurrency exchange Binance has officially ceased trading USDT and eight other stablecoins in the European Economic Area (EEA) in compliance with MiCA regulations.
Binance Delists USDT in the EEA
On March 3, Binance notified its users about the impending delisting of USDT, setting a March 31 deadline for non-MiCA-compliant stablecoins. Despite the removal of these trading pairs, users in the EEA can still hold and trade the affected stablecoins through perpetual contracts. Alongside USDT, Binance has delisted several other stablecoins, including Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and PAX Gold (PAXG). To adapt to the new regulations, Binance has encouraged its users to convert their holdings into MiCA-approved stablecoins such as USD Coin (USDC) or Eurite (EURI).
Other Exchanges Follow Binance’s Lead
Binance is not the only exchange making adjustments in response to MiCA. In February, Kraken also delisted USDT and other stablecoins in the EEA, including PayPal USD (PYUSD), Tether EURt (EURT), and TrueUSD (TUSD). Meanwhile, Coinbase had already removed USDT from its platform, anticipating the regulatory shift. Some smaller exchanges, however, continue to offer USDT trading as they await further regulatory updates.
Impact on the Crypto Market
The removal of USDT, the world’s most widely used stablecoin, is expected to impact market liquidity in Europe. Traders may face slower transactions and higher costs as they transition to alternative stablecoins. Many investors are now questioning whether MiCA-compliant stablecoins can offer the same stability and liquidity as USDT, which has long been a cornerstone of crypto trading.
As new regulatory frameworks come into play, the cryptocurrency industry in Europe is undergoing changes that may alter existing trading and liquidity mechanisms. The transition to MiCA-compliant stablecoins remains a matter of debate among many traders and investors.
