Binance to Delist USDT and Non-MiCA Stablecoins for EU Users by 2025

Binance has announced it will remove all stablecoins that do not comply with the EU’s Markets in Crypto-Assets (MiCA) regulations for users in the European Economic Area (EEA). The exchange has set March 31, 2025, as the deadline for the transition, urging customers to shift to MiCA-compliant alternatives like USD Coin (USDC) and Eurite (EURI).

Binance’s Plan to Delist Non-Compliant Stablecoins

Binance's decision aligns with the MiCA regulatory framework, which imposes stricter requirements on stablecoin issuers operating in the EU. As a result, major stablecoins like Tether (USDT), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), and DAI will no longer be available for trading on Binance after the deadline.

What This Means for Binance Users

Despite the delisting, Binance has assured users that they can still deposit, withdraw, and convert non-compliant stablecoins through Binance Convert after March 31, 2025. However, direct trading of these stablecoins will no longer be possible.

To help users transition smoothly, Binance has introduced zero-fee trading on selected USDC pairs, as well as incentives for those trading in USDC and EURI.

Changes to Trading and Margin Accounts

The delisting will also impact various trading activities on Binance:

• Margin trading pairs involving non-MiCA stablecoins will be removed by March 27, 2025. Binance will automatically convert remaining balances in margin accounts to USDC.

• Spot trading pairs for non-compliant stablecoins will be delisted by March 31, 2025. After this, any remaining balances can only be sold via Binance Convert.

• Pending orders on delisted pairs will be canceled within 48 hours after delisting.

Binance has encouraged users to convert affected assets before the deadline to avoid liquidation risks.

Industry Reaction and Concerns

The enforcement of MiCA regulations has sparked concerns among industry players. Tether CEO Paolo Ardoino has criticized the requirement that stablecoin issuers must hold at least 60% of their reserves in EU banks, arguing it introduces financial risks, as deposits above €100,000 are uninsured.

As a result, several EU-based exchanges, including Coinbase, have already delisted USDT. However, Tether claims the delisting will have minimal impact since the EU accounts for a small portion of its overall business.

Conclusion

Binance’s move to comply with MiCA regulations will significantly impact stablecoin trading in the EU. While non-compliant stablecoins like USDT will no longer be available, Binance has provided incentives and alternative options for affected users. As the crypto industry adapts to new regulations, traders in the EEA should prepare for the upcoming changes before the March 31, 2025 deadline.

FAQ

1. What is the MiCA regulation, and why does it affect stablecoins?

MiCA (Markets in Crypto-Assets) is a European Union regulatory framework that imposes stricter rules on cryptocurrency assets, including stablecoins. It requires stablecoin issuers to maintain specific reserve levels and comply with transparency standards.

2. Which stablecoins will Binance delist for EU users?

Binance will remove USDT, FDUSD, TUSD, USDP, DAI, and other non-MiCA-compliant stablecoins. Users are encouraged to switch to USDC or EURI.

3. Will I still be able to hold USDT in my Binance account?

Yes, users can deposit, withdraw, and convert non-compliant stablecoins, but they won’t be able to trade them after March 31, 2025.

4. How will margin trading be affected?

Margin trading pairs involving non-MiCA stablecoins will be delisted by March 27, 2025, and any remaining balances will be converted to USDC automatically.

5. What should Binance users do before the deadline?

To avoid liquidation risks, users should convert their non-compliant stablecoin holdings to MiCA-approved alternatives like USDC and EURI before the March 31 deadline.