Binance Delists USDT to Comply with MiCA Regulation in the EEA
Binance has delisted spot trading pairs with Tether’s USDt (USDT) in the European Economic Area (EEA) to comply with the Markets in Crypto-Assets Regulation (MiCA).
The move follows a plan announced in early March, aligning with the local regulatory requirement to remove non-MiCA-compliant tokens by the end of Q1 2025.
What Does This Mean for Users?
While spot trading pairs involving USDT and other non-compliant tokens are no longer available in the EEA, users can still custody the affected tokens and trade them through perpetual contracts on Binance. This means that although spot trading for tokens like USDT, Dai (DAI), and Pax Dollar (USDP) is restricted, the option to trade them in derivative markets remains intact.
Other Exchanges Follow
Kraken has also delisted USDT for spot trading in the EEA, restricting it to sell-only mode as of March 24. This action aligns with the European MiCA requirements and follows a similar pattern set by Binance. Kraken’s delisting roadmap included other non-compliant tokens like PayPal USD (PYUSD) and TrueUSD (TUSD), with MiCA-compliant tokens being allowed to continue trading.
Custody of Non-MiCA Tokens Remains Permissible
Despite delisting, exchanges like Binance and Kraken can still offer custody services for non-MiCA-compliant tokens, as per clarification from ESMA (European Securities and Markets Authority). This decision ensures that services for holding and transferring these tokens are in line with the new laws, though trading activities for certain tokens have been restricted.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
