Binance has discontinued spot trading with Tether (USDT) and other non-MiCA compliant tokens for users in the European Economic Area (EEA), but users can still custody these tokens and trade them in perpetual contracts.
Delisting and Its Reasons
In early March, Binance announced its plan to delist non-MiCA-compliant tokens, specifically for users in the EEA. This decision included ceasing spot trading in nine stablecoins including USDT. The officially impacted assets include tokens such as USDT, FDUSD, TUSD, USDP, DAI, AEUR, XUSD, and PAXG. MiCA compliant pairs like USDC, EURI, and fiat pairs (EUR) will remain unaffected.
Reactions from Other Exchanges
Alongside Binance, other crypto exchanges like Kraken and Crypto.com announced the delisting of tokens not complying with MiCA. However, ESMA representatives noted custody and transfer services for such tokens do not violate new European laws as these services are not prohibited under Titles III and IV of MiCA.
Implications for Users
Despite the halt on spot trading, EEA users can continue custody and trade these tokens through perpetual contracts. Binance recommended converting remaining non-compliant stablecoins to USDC, EURI, and EUR.
Binance's delisting to comply with MiCA regulations mitigates its impact as users in EEA are still able to trade tokens via perpetual contracts.
