Binance Drops USDT Spot Trading in Europe to Comply with MiCA Rules

Binance Delists USDT and Other Non-MiCA-Compliant Tokens in EEA While Maintaining Custody Services

  • Binance and other exchanges have delisted spot trading pairs with non-MiCA-compliant tokens like USDT in the European Economic Area.
  • Users in the EEA can still custody these tokens and trade them in perpetual contracts on Binance.
  • The European Securities and Markets Authority (ESMA) has confirmed that custody services for non-MiCA-compliant stablecoins do not violate European cryptocurrency laws.

Binance has removed spot trading pairs with Tether‘s USDt and other non-MiCA-compliant tokens in the European Economic Area (EEA) to comply with the Markets in Crypto-Assets Regulation (MiCA). This change, which was initially announced in early March, still allows EEA users to hold these tokens and trade them in perpetual contracts, according to information obtained by Cointelegraph.

- Advertisement -

The delisting of spot trading pairs was completed by March 31, aligning with the local requirement to remove such tokens by the end of Q1 2025. While EEA users can no longer engage in spot trading for these tokens, Binance continues to provide custody services and perpetual contract trading options.

Binance isn’t the only exchange implementing these changes. Kraken also restricted USDT trading in the EEA, switching to sell-only mode on March 24. Currently, Kraken doesn’t allow its EEA users to purchase the affected tokens, though selling remains possible.

Affected Tokens Beyond USDT

Beyond Tether’s USDt, Binance has delisted spot trading pairs for several other non-MiCA-compliant tokens in the EEA. These include Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and PAX Gold (PAXG).

Kraken’s delisting roadmap is more limited, focusing on five tokens: USDT, Paypal USD (PYUSD), Tether EURt (EURT), TrueUSD, and TerraClassicUSD.

Regulatory Clarity on Custody Services

- Advertisement -

The decision by exchanges to maintain custody services for non-MiCA-compliant tokens follows guidance from European regulators. On March 5, a spokesperson for the European Securities and Markets Authority (ESMA) informed Cointelegraph that custody and transfer services for non-MiCA-compliant stablecoins do not violate new European cryptocurrency laws.

However, some confusion remains about MiCA requirements. The same regulator previously advised European crypto asset service providers to stop all transactions involving the affected tokens after March 31, creating uncertainty about the exact scope of the restrictions.

Despite the spot trading restrictions, the continued availability of custody services provides EEA users with some options for managing their holdings of non-MiCA-compliant tokens like USDT, even as the regulatory landscape continues to evolve.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Bitcoin Whales Move 20,000 BTC Worth $2B, Stir Market Speculation

Two major Bitcoin wallets transferred 20,000 BTC, valued at over $2 billion, to new...

Nissan Recalls 480,000 Vehicles; Stock Surges Despite Engine Issue

Nissan is recalling over 480,000 vehicles in the U.S. and Canada due to engine...

Bitcoin Risks $2.67B in Longs if Price Falls Below $108K Level

Bitcoin's price approaches its all-time high, with traders watching for signs of a breakout...

CrowdStrike Stock Hits Record High After Analysts Hike Price Target

CrowdStrike Holdings (CRWD) stock reached an all-time high with a gain of more than...

Amber International Raises $25.5M to Grow $100M Crypto Reserve Fund

Amber International Holding raised $25.5 million in a private placement to expand its $100...

Must Read

10 Best Bitcoin Debit Cards

You are reading this post because you want to get your hands on the best bitcoin debit card - right? Well, we got you covered. We...