Binance To Delists USDT and Other Major Stablecoins in EU by end of March

Binance, a leading cryptocurrency exchange, has announced that it will delist all stablecoins not compliant with the European Union's Markets in Crypto-Assets (MiCA) regulations for users in the European Economic Area (EEA) by March 31, 2025.

In a major announcement, Binance will be delisting the following Stablecoins by March 31, 2025:

• Tether (USDT)
• First Digital USD (FDUSD)​
• TrueUSD (TUSD)
• Pax Dollar (USDP)
• Dai (DAI)
• Anchored Euro (AEUR)
• TerraUSD (UST)
• TerraClassicUSD (USTC)
• PAX Gold (PAXG)

Binance advises EEA users to transition to MiCA-compliant alternatives such as Circle's USD Coin (USDC) and Eurite (EURI) before the deadline.

User Guidance

Despite the delisting, Binance assures users that they can continue to deposit, withdraw, and convert non-compliant stablecoins through Binance Convert. The exchange emphasizes its commitment to adhering to EU regulations, stating: "Custody of non-MiCA Compliant Stablecoins will continue, and you will be able to withdraw or deposit non-MiCA Compliant Stablecoins at any time."

Impact on Trading

The delisting will affect certain trading activities:

• Margin Trading: Pairs involving non-MiCA compliant stablecoins will be removed starting March 27, 2025. Binance will automatically convert any remaining non-compliant assets in margin accounts to USDC. Users are encouraged to convert their affected assets before this date to avoid liquidation risks.

• Spot Trading: All non-MiCA compliant stablecoin pairs will be removed from spot trading by March 31, 2025. Pending orders on these pairs will be canceled within 48 hours of delisting. After removal, remaining stablecoin holdings can only be sold through Binance Convert.​

User Incentives

To facilitate a smooth transition, Binance is offering several incentives for EEA users:

• Zero-fee trading promotions for selected USDC pairs.
• Rewards for trading in USDC and EURI.
• Special savings opportunities through Binance Earn.

Industry Reactions

The implementation of MiCA regulations has raised concerns among industry players. For instance, Tether's CEO, Paolo Ardoino, criticized the requirement for stablecoin issuers to hold at least 60% of reserves in EU banks, warning it could introduce financial risks since deposits exceeding €100,000 are not insured. Despite the delisting, Tether maintains that the impact on its business will be minimal, as the European market represents a relatively small volume for the company.

This move by Binance underscores the increasing regulatory scrutiny in the cryptocurrency industry and highlights the necessity for exchanges and stablecoin issuers to align with evolving compliance standards to ensure continued operations within the EU.