Leading cryptocurrency exchange Binance has revealed plans to delist nine stablecoins for users in the European Economic Area (EEA) on March 31 as regulatory pressure intensifies.
The company noted that the affected stablecoins do not comply with the Markets in Crypto-Assets Regulation (MiCA) framework.
Binance to Delist USDT on March 31
In an official blog post, Binance stated that it will delist the largest stablecoin, USDT, along with eight other stablecoins, including Dai, FDUSD, TUSD, USDP, AEUR, UST, USTC, and PAXG, and their trading pairs. EU customers can still trade these assets until the deadline of March 31, 2025.
After the deadline, Binance will discontinue all trading pairs involving these stablecoins, and any remaining holdings can only be sold through Binance Convert. Additionally, all pending spot orders will be terminated within 48 hours.
Meanwhile, Binance noted that MiCA-compliant alternatives, like USDC and EURI, will remain available. Therefore, users are encouraged to convert their non-compliant stablecoin holdings to USDC, EURI, or fiat currencies like EUR before the deadline.
The exchange has also unveiled several special offers geared towards assisting users in their transition, including zero-fee promotions and higher interest rates on Earn products. There is also a $1 million USDC giveaway for users trading USDC or EURI.
MiCa Compliance Deadline Looms
Binance’s announcement comes off the back of similar moves by several top exchanges, including Kraken. Earlier in January, Coinbase’s CEO, Brian Armstrong, stated that the exchange could delist USDT if regulatory pressure persists.
The recently introduced MiCA framework imposes stricter regulatory guidelines for crypto-assets, including stablecoins. The framework mandates every stablecoin issuer operating within the EU to obtain authorization as a credit or electronic money institution.
Additionally, these firms also provide comprehensive documentation of the key features and technical aspects of their tokens. The framework is designed to boost transparency and ensure consumer protection.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
