The MiCA rules were finalised in 2022 by EU regulators
Other exchanges in the EU will drop non-compliant stablecoins
The EU has provided clear rules for Web3 firms to operate safely
The EU's MiCA regulations went into full effect on December 30, 2024
Photo Credit: Unsplash/ Guillaume Perigois
Binance is set to delist stablecoins that do not comply with the EU's MiCA regulations in the coming days. These stablecoins will no longer be available to users in the European Economic Area (EEA) after March 31. The exchange has identified nine affected stablecoins, including Tether (USDT), the largest by market capitalisation. Announcing the decision, Binance stated that the move aligns with the latest guidance from EU authorities on stablecoin regulations.
In January, the European Securities and Markets Authority (ESMA) had directed all crypto exchanges to check if assets listed on their platforms were in alignment with the MiCA laws. TheEU authority had instructed exchanges to identify and stop circulation of tokens that are not in compliance with the MiCA legislation.
Following the guidelines, Binance said First Digital USD (FDUSD), Pax Dollar (USDP), Dai (DAI), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), TrueUSD (TUSD), and Paxos Gold (PAXG) along with Tether will no longer be available for its EU users starting April 1.
“We encourage you to convert any remaining non-MiCA compliant stablecoin holdings (e.g. USDT) to USDC, EURI, or EUR at your earliest convenience,” Binance said in its announcement.
Stablecoins are crypto tokens whose value is backed by an underlying asset, typically fiat currencies or reserve assets like gold. This pegging helps stabilise their value, shielding them from market volatility. They enable real-time, borderless payments while maintaining a permanent transaction record on the blockchain.
Binance has informed its EEA users that they can continue trading the affected stablecoins until the deadline, after which these tokens will be fully removed from the platform's spot market. Additionally, all trading pairs linked to non-MiCA-compliant stablecoins will be delisted across European nations starting in April.
Tether has yet to respond to Binance's announcement. It is expected that other MiCA-registered exchanges in the EU may also take similar actions against non-compliant stablecoins before the month's end.
Notices from European Authorities
The European Banking Authority (EBA) has instructed all crypto-related service providers to remove non-MiCA compliant asset-referenced tokens (ARTs) and electronic money tokens (EMTs) from their respective platforms within the first quarter of 2025 – ending with March.
In January, the ESMA reminded all crypto businesses about EBA's direction, that nudged Binance to take legally appropriate steps.
“Crypto Asset Service Providers (CASPs) should launch effective communication campaigns aimed at raising awareness among EU investors about the impact of MiCA's application on ARTs and EMTs that are not authorised,” the reminder notice by ESMA said.
The ESMA has also asked National Competent Authorities (NCAs) to guide CASPs in getting their operations in-line with the MiCA regulations in the EU nations.
About Markets in Crypto-Assets (MiCA)
The EU's MiCA regulations came into full effect on December 30, 2024. Finalised in 2022, the legislation aims to create a safer and more transparent environment for industries and investors engaging with crypto. It establishes clear guidelines on licensing, compliance, and ethical business practices for Web3 firms operating across the 27 EU nations.
In recent months, major crypto platforms—including Kraken, BitPanda, OKX, Crypto.com, and Standard Chartered—have secured official MiCA approvals, leveraging the regulatory clarity to legalise their operations within the EU.
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