Binance, one of the largest cryptocurrency exchanges in the world, has announced the cessation of spot trading of Tether (USDT) in the European Economic Area (EEA): the move is part of the compliance plan with the new directives introduced by the European regulation MiCA (Markets in Crypto-Assets Regulation).
Marking consequently a further step in aligning the crypto industry with the regulatory principles of the European Union.
Summary
Regulatory pressure from MiCA on the crypto sector increases: stop to spot trading for Tether in the EEA by Binance
Even though Binance has delisted the spot trading pairs linked to USDT, users in the EEA will not be completely deprived of the possibility to manage this asset. In fact, it will still be possible to custody the tokens not compliant with MiCA and trade them through perpetual contracts.
The removal concerns exclusively spot trading, that is, immediate buying and selling operations on the market.
The shares of the exchange are part of a broader plan announced in March, according to which all spot trading pairs linked to non-compliant tokens would be removed by March 31.
This with the objective of meeting the local requirement of complete delisting by the first quarter of 2025.
Binance is not the only one reacting to regulatory pressure. Kraken, another major exchange, took similar measures as early as February, announcing the delisting of spot trading pairs for tokens including USDT, PayPal USD, Tether EURt, TrueUSD, and TerraClassicUSD.
According to an official communication published on Kraken’s portal, starting from March 24, users in the EEA area can only sell USDT, with a total block on purchasing.
In fact, this results in a significant limitation of operations, although not a complete exclusion of the asset.
Other tokens involved in the delisting
In addition to USDT, Binance has removed several other stablecoin and non-compliant MiCA tokens from spot trading. Among these are:
- – Dai (DAI)
- – First Digital USD (FDUSD)
- – TrueUSD (TUSD)
- – Pax Dollar (USDP)
- – Anchored Euro (AEUR)
- – TerraUSD (UST)
- – TerraClassicUSD (USTC)
- – PAX Gold (PAXG)
The portfolio of the affected tokens demonstrates how the new regulation imposes a higher standard of transparency, security, and regulatory framework to allow the circulation of criptovalute in the EU.
Despite the increasing restrictions, not everything related to non-compliant tokens is prohibited.
A spokesperson for ESMA (European Securities and Markets Authority) clarified on March 5th that offering custody and transfer services for non-compliant stablecoins does not constitute a violation of the MiCA regulation.
However, the same ESMA has advised European crypto service providers to interrupt all transactions related to non-approved tokens after March 31, creating a certain degree of ambiguity on the concrete application of the guidelines.
The MiCA regulation, which came into force with the aim of uniformly regulating the cryptocurrency sector within the European Union, imposes new conditions that particularly concern:
- – The mandatory authorization of crypto service providers
- – The transparency of whitepapers
- – The reserve requirement for stablecoin issuers
- – Surveillance on systemic risks
One of the main impacts is precisely on stablecoins, like USDT, which will have to demonstrate that they have solid, transparent, and accessible reserve assets.
The platforms that wish to maintain the trading of these tokens within the European market will need to ensure that the assets are fully compliant.
What does it mean for the future of crypto trading in Europe?
The choice by Binance and Kraken to limit spot trading rather than completely exclude the tokens demonstrates a pragmatic strategy.
By still offering custody services and operations on derivatives, the exchange leave a door open to users, keeping part of the demand operational while complying with regulations.
However, in the long term, it is evident that non-compliant cryptocurrencies risk being progressively marginalized in the European market.
The operators are already working to adapt to the new standard, and it is not excluded that many tokens that are not compliant today may evolve to meet the MiCA criteria.
The decision of Binance to close spot trading of USDT in the EEA marks a key moment in the crypto compliance journey in Europe.
The concrete application of the MiCA regulation begins to shape the behavior of exchanges and service providers, pushing the entire ecosystem towards greater transparency and regulation.
In the meantime, even if the custody of tokens remains allowed, European users will need to prepare to navigate a market with a limited offering for certain assets.
The transition is now underway, and 2025 will likely mark the definitive alignment of the European crypto sector with MiCA standards.