Cryptocurrency exchange Binance has officially delisted spot trading pairs involving Tether’s USDT and several other tokens for users in the European Economic Area (EEA), following through on plans announced in early March. This move comes as part of the exchange’s efforts to comply with the Markets in Crypto-Assets Regulation (MiCA), which requires platforms to remove non-compliant tokens from spot trading by the end of Q1 2025.
The delisting extends beyond just Tether, affecting a range of stablecoins including Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), and others. While spot trading has been discontinued, Binance continues to allow EEA users to custody these tokens and trade them through perpetual contracts. This approach aligns with guidance from the European Securities and Markets Authority (ESMA), which confirmed that custody and transfer services for non-MiCA-compliant stablecoins do not violate European cryptocurrency laws.
Binance isn’t alone in making these changes, as other major exchanges operating in Europe have implemented similar restrictions. Kraken, for instance, began restricting USDT to sell-only mode for EEA users on March 24 before completing its delisting process. However, some confusion remains in the industry due to seemingly contradictory regulatory guidance, as ESMA had previously advised European crypto asset service providers to halt all transactions involving the affected tokens after March 31, while simultaneously confirming that custody services could continue.
