In a significant development, leading global cryptocurrency exchange, Binance, has disclosed that it will delist all non-MiCA compliant stablecoins for users in the European Economic Area (EEA) by March 31, 2025.
This decision follows recent regulations under the EU’s Markets in Crypto-Assets (MiCA) framework.
Essentially, this rule has introduced stricter rules for stablecoin issuers.
● Binance to delist major stablecoins by March 2025
According to the exchange’s statement, major stablecoins like Tether (USDT), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), DAI, and others listed on the platform will no longer be available for trading.
Similarly, Binance has also directed its users to switch to MiCA-compliant alternatives like Circle’s USD Coin (USDC) and Eurite (EURI) before the deadline, the last of March 2025.
It is worth mentioning that while delisting typically affects trading pairs more, the exchange has given its users a vote of confidence.
Users can deposit, withdraw, and convert non-compliant stablecoins through Binance Convert.
Furthermore, the exchange stressed its unrelenting efforts to play by the rules and regulations established by EU watchdogs.
“Custody of non-MiCA Compliant Stablecoins will continue, and you will be able to withdraw or deposit non-MiCA Compliant Stablecoins at any time,” Binance stated.
● Changes to trading and margin accounts
As noted, the move might impact some of Binance’s trading activities.
Notably, margin trading pairs involving non-MiCA stablecoins will be delisted from March 27, 2025.
In addition, based on the statement released, Binance will automatically convert any remaining non-compliant assets in margin accounts to USDC.
More importantly, the exchange has encouraged users to convert their affected assets before this date to avoid liquidation risks.
Furthermore, all non-MiCA-compliant stablecoin pairs will be removed from spot trading by March 31, 2025.
Until then, these pairs will remain available.
However, once removed, any remaining stablecoin holdings can only be sold through Binance Convert.
Likewise, pending orders on these trading pairs will be cancelled within 48 hours of delisting.
To ensure seamless user and exchange interaction, Binance has introduced several rewards and compensations for EEA users.
These include zero-fee trading promotions for selected USDC pairs, rewards for trading in USDC and EURI, and special savings opportunities through Binance Earn.
Notably, implementing MiCA regulations has raised concerns among some industry players.
For example, Tether CEO Paolo Ardoino has criticized the requirement for stablecoin issuers to hold at least 60% of reserves in EU banks.
He warned that it could introduce financial risks since deposits exceeding €100,000 are not insured.
Amid the criticism, USDT has been delisted from many exchanges in the EU, including Coinbase.
In general, the stablecoin issuer argues the EU delisting will not impact its business as volume from the region is relatively small.
https://www.coinspeaker.com/binance-complete-delisting-usdt-major-stablecoins-eu-users/
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