Binance to Delist Stablecoins in Compliance With MiCA in Europe

By: Eliza Bennet

Cryptocurrency exchange platform Binance is set to delist nine stablecoins, including prominent ones like Tether (USDT) and Dai (DAI), for its users within the European Economic Area (EEA). This strategic decision, scheduled for March 31, 2024, underscores Binance's efforts to align with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which aim to bring much-needed standardization and clarity to the rapidly growing digital asset sector.

This regulatory compliance move impacts a total of seven other stablecoins: First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and Paxos Gold (PAXG). Users will be allowed to trade these assets until the deadline, after which their spot trading will cease. However, Binance will continue supporting deposits, withdrawals, and conversions of these non-compliant stablecoins through Binance Convert, ensuring clients can manage their digital assets effectively.

Binance has stated its intention to further modify margin trading, delisting non-compliant pairs by March 27. The exchange also plans to encourage the use of Circle’s USD Coin (USDC) by converting any remaining balances of delisted tokens to USDC. The move is anticipated to bolster USDC's market presence, enhancing its compliance with MiCA mandates. Binance plans to introduce fee-free trading options and incentives for users switching to MiCA-compliant stablecoins like USDC and EURI. These efforts highlight Binance's proactive approach to embedding regulatory adaptability into its operations, even as it continues offering custody services for affected assets.

MiCA came into effect in December 2024, establishing a comprehensive framework for digital assets across the EU. This unified regulation has prompted other major crypto trading platforms, such as Coinbase and Crypto.com, to foresee similar delistings of non-compliant tokens. Meanwhile, Tether has voiced concerns over the swift application of these regulations, warning of potential disruptions and risks of market destabilization if enforced too hastily. As the cryptocurrency ecosystem evolves, Binance's actions could signal a pivotal shift towards regulated innovations in the European crypto market.