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).

Binance has begun delisting Tether’s USDt (USDT) spot trading pairs in the European Economic Area (EEA) to comply with the Markets in Crypto-Assets Regulation (MiCA).

The move, first announced in early March and part of a broader plan to remove non-MiCA-compliant tokens by the end of Q1 2025, aligns with local regulatory requirements.

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 being restricted, the option to trade them in derivative markets remains.

The move follows a similar action by Kraken, which also delisted USDT for spot trading in the EEA on March 24, switching it to sell-only mode. This action by Kraken is in accordance with the European MiCA regulations.

Earlier this year, several major cryptocurrency exchanges, including Binance, announced plans to withdraw non-MiCA-compliant tokens from the European market by the end of the first quarter of 2025. This move follows the enactment of the new MiCA legislation in the European Union.

As per an official statement from Binance, the exchange will be shutting down the spot trading pairs for USDT, USDC, and other non-MiCA-compliant tokens in the EEA. However, it will continue to provide custody services for these tokens.

“We are writing to inform you that Binance will be shutting down the spot trading pairs for non-MiCA compliant tokens (e.g., USDT, USDC, PAX, DAI, and BUSD) in the EEA by Q1 2025, as required by the Markets in Crypto-assets Regulation (MiCA),” the exchange said in a statement.

The move follows an earlier decision by ESMA (European Securities and Markets Authority) to permit exchanges to offer custody services for non-MiCA compliant tokens despite the impending regulation.

“Following this decision by ESMA, Binance will continue to provide custody services for non-MiCA compliant tokens to ensure a smooth transition for our users and a compliant launch of MiCA tokens later this year,” Binance added.

The updated regulation also requires that any crypto service provider applying for registration in order to operate in the EEA must be fully compliant with MiCA by the end of 2025. This includes any service providers that are already registered in a single European country and passport their services throughout the EEA.