Binance stops trading Tether USDT in Europe
Binance Delists USDT and Other Stablecoins in EEA to Comply With MiCA.
Binance has officially discontinued spot trading pairs with Tether’s USDT and several other non-compliant stablecoins in the European Economic Area (EEA), in line with the Markets in Crypto-Assets Regulation (MiCA) framework.
The move marks a significant step in the EU’s tightening oversight of stablecoins, which came into effect at the end of Q1 2025, reports Cointelegraph.
Compliance With MiCA Forces Delistings
The decision follows Binance’s earlier announcement in March outlining plans to delist tokens that don’t meet MiCA’s regulatory requirements. While spot trading pairs for USDT, DAI, FDUSD, TUSD, USDP, AEUR, UST, USTC, and PAXG have been removed, custody and perpetual contract trading for these assets remain available to EEA users.
Binance emphasized that these changes are intended to align with MiCA’s legal deadlines, which require delisting non-compliant stablecoins from spot markets by March 31, 2025.
Other Exchanges Follow Suit
Kraken has also implemented similar changes. On March 24, it placed USDT in sell-only mode for EEA users and ceased all purchase options for the token. Kraken’s delisting roadmap also includes PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD, and TerraClassicUSD (USTC).
Confusion Over MiCA’s Application
Despite these restrictions, the European Securities and Markets Authority (ESMA) clarified earlier in March that custody and transfer services for non-MiCA-compliant stablecoins are not prohibited. However, ESMA also previously urged crypto asset service providers to halt all transactions involving non-compliant stablecoins after March 31, creating some uncertainty in the industry over the interpretation of the rules.
This regulatory gray area has prompted exchanges like Binance and Kraken to take a cautious approach, limiting spot trading while maintaining custody to remain legally compliant without fully severing user access to popular stablecoins.
Looking Ahead
MiCA’s implementation marks the beginning of a more regulated era for crypto in Europe. While the current focus is on stablecoins, future phases of the regulation will extend to broader areas, including crypto service provider licensing, investor protections, and operational standards.
As MiCA’s influence spreads, crypto firms operating in the EEA will likely continue to adjust their offerings to remain in compliance, potentially reshaping the regional stablecoin market and opening the door for MiCA-compliant alternatives to gain traction.
Recently we wrote, that stablecoin giant Tether, the issuer of USDT, has significantly expanded its Bitcoin holdings, acquiring 8,888 BTC—valued at approximately $735 million—during the first quarter of 2025.
