Binance has ceased spot trading for Tether’s USDT within the European Economic Area (EEA) to comply with the Markets in Crypto-Assets Regulation (MiCA).
The crypto exchange recently removed several spot trading pairs involving non-MiCA-compliant tokens in the EEA, following its plan announced earlier in March.
Although spot trading pairs with assets like USDT are no longer available on Binance, users in the region can still hold these tokens and trade them via perpetual contracts.
Binance had previously stated that all spot trading pairs involving non-compliant tokens would be delisted by March 31. This aligns with regional regulations requiring the removal of such tokens before the first quarter of 2025 ends.
Other Crypto Exchanges Also Delisting Non-Compliant Tokens
Binance is not the only exchange taking steps to comply with MiCA. Platforms like Kraken have also removed spot trading pairs for certain tokens in the EEA, following an announcement in February.
Kraken’s official notice stated that USDT was placed in a sell-only mode for EEA users as of March 24. As of now, users in the region cannot purchase these tokens on the platform.
Apart from USDT, Binance has also delisted spot trading pairs for other stablecoins, including:
- Dai (DAI)
- First Digital USD (FDUSD)
- TrueUSD (TUSD)
- Pax Dollar (USDP)
- Anchored Euro (AEUR)
- TerraUSD (UST)
- TerraClassicUSD (USTC)
- PAX Gold (PAXG)
Kraken, on the other hand, has only delisted five tokens: USDT, PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD, and TerraClassicUSD.
Custody Services Remain Intact
Despite these changes, Binance and Kraken continue to offer custody and transfer services for non-MiCA-compliant tokens.
On March 5, a spokesperson from the European Securities and Markets Authority (ESMA) clarified that providing custody services for such assets does not violate MiCA regulations.
However, ESMA had previously recommended that crypto service providers in Europe cease all transactions involving these tokens after March 31, creating some uncertainty around how MiCA regulations will be enforced moving forward.
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