Key takeaways

• Binance will remove nine stablecoins in the EEA, including USDT, DAI and TUSD, starting March 31 to comply with MiCA regulations.
• MiCA mandates that only licensed issuers can offer stablecoins in the EEA, enforcing transparency, investor protection and financial stability.
• Affected stablecoins can no longer be used for trading on Binance, but users can still deposit, withdraw and convert them into MiCA-compliant options.
• Binance is adjusting operations to align with MiCA but has not yet obtained a MiCA license, raising regulatory concerns.

Binance is set to delist multiple stablecoins in the European Economic Area (EEA) to comply with the Markets in Crypto-Assets (MiCA) regulation. The EEA includes the 27 EU countries, along with Iceland, Liechtenstein and Norway. 

Starting March 31, users in the region will no longer be able to trade certain non-compliant stablecoins, including Tether (USDT), Dai (DAI) and TrueUSD (TUSD). 

This article explores what Binance’s delisting means for European users, how they can manage their funds and the future of stablecoins under MiCA.

ESMA and EBA’s guidance on non-MiCA-compliant ARTs and EMTs 

On Jan. 17, the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, and the European Banking Authority (EBA) published a statement emphasizing the need for crypto-asset service providers (CASPs) to comply with MiCA, which took effect on June 30, 2024. This regulation applies to asset-referenced tokens (ARTs) and electronic money tokens (EMTs), commonly termed stablecoins, and requires CASPs to ensure compliance before offering such assets for public trading.

The European Commission (EU) has issued a Q&A clarifying that CASPs engaging in public offerings or trading non-MiCA-compliant ARTs and EMTs must cease these operations. National Competent Authorities (NCAs) will guide CASPs through this transition to ensure consistent compliance across the EU. 

NCAs are regulatory bodies or agencies in each EU member state responsible for overseeing and enforcing compliance with EU laws and regulations within their jurisdiction.

The CASPs managing trading platforms are expected to halt the trading of non-compliant ARTs and EMTs unless the issuer is authorized in the EU. Services such as order execution, crypto-to-fiat exchanges and reception/transmission of orders for non-compliant assets must be discontinued if they qualify as public offerings under MiCA.

CASPs were to stop facilitating new transactions involving non-compliant ARTs and EMTs to facilitate a smooth transition by January 2025. However, a “sell-only” option will be available until the end of Q1 2025, allowing investors to liquidate or convert their holdings. CASPs are expected to inform investors about the impact of these restrictions and implement technical measures to aid the transition.

Finally, NCAs must ensure that CASPs comply with MiCA’s requirements when processing authorization applications. Although ESMA and NCAs cannot override EU laws, they are responsible for minimizing market disruptions during the implementation of MiCA.

Did you know? Under MiCA, global stablecoin issuers must use EU-authorized custodians and adopt complex structures, as seen with Circle’s French subsidiary issuing USDC in Europe.

How Binance’s stablecoin delisting will impact European users

As mentioned, Binance, one of the world’s largest cryptocurrency exchanges, will delist multiple stablecoin pairs in the EEA to comply with the MiCA regulation.

Spot trading

Starting at 23:59 UTC on March 31, Binance will remove spot trading pairs for nine non-compliant stablecoins in the EEA. The affected stablecoins include USDT, DAI, TUSD, First Digital USD (FDUSD), Pax dollar (USDP), Anchored euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC) and PAX gold (PAXG).

MiCA-compliant stablecoins pairs, such as USDC and EURI, and fiat pairs (EUR) will be available in the EEA without restrictions after the deadline. Users can sell any remaining non-MiCA-compliant stablecoin holdings on the platform through Binance Convert. Notably, Binance will cancel all pending spot orders within 48 hours of delisting.

Despite delisting spot trading pairs, Binance will maintain custody support for affected stablecoins. Users can still deposit, hold and withdraw these stablecoins post-deadline but cannot use them for other Binance products and services.

Binance has yet to obtain a MiCA license, and it remains unclear whether its approach aligns with the regulations. Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s Technical Committee, has noted that under MiCA, stablecoins like USDT should not remain accessible in any form, even under a “sell-only” mode, beyond the March 31 deadline.

Did you know? The European Parliament approved MiCA on April 20, 2023. It went into effect in installments over 2024. On Dec. 30, 2024, MiCA came into full effect.

Margin trading

Starting March 27 at 07:00 (UTC), all non-MiCA-compliant margin trading pairs will be entirely delisted for EEA users. To avoid disruptions, users may convert their non-MiCA stablecoin assets and liabilities in margin accounts to USDC.

For Cross Margin Classic, Cross Margin Pro and Cross Margin (PM) accounts, Binance will automatically convert any remaining non-compliant stablecoin assets and liabilities to USDC and cancel all pending orders after the deadline. Users must complete the conversion beforehand to prevent liquidation risks.

Cross Margin Classic, Cross Margin Pro, and Cross Margin (PM) are different account types on Binance offering varying levels of risk and control for margin traders:

• Cross Margin Classic uses the entire balance of the margin account to cover potential losses across all positions, simplifying fund management. 
• Cross Margin Pro is a more advanced version, offering professional traders greater control and enhanced features.
•  Cross Margin (PM), or professional mode, is designed for experienced traders, providing higher leverage, custom risk management strategies and lower fees for greater flexibility in managing positions.

Binance Margin will close all isolated margin positions, repay liabilities, perform automatic settlements and cancel pending orders for non-compliant isolated margin trading pairs, which will then be removed from Binance Margin. 

An isolated margin means that each position in the account has a separate margin balance, and only that balance is at risk if the position is liquidated. Cross margin refers to an account type where the available balance is used to maintain positions across multiple assets, reducing the need to transfer funds between assets to avoid liquidation.

Earn and loans

EEA users should proactively convert their Binance Simple Earn and Dual Investment holdings, as well as collateral and loans under Binance Loans and VIP Loans, from non-MiCA-compliant stablecoins (e.g., USDT) to MiCA-compliant alternatives (e.g., USDC) or other tokens by March 31 before 23:59 (UTC).

After this deadline, users can still use Binance Convert to sell any remaining non-compliant stablecoin holdings.

Removal of trade orders and trading bots services

After the deadline, all trade orders will be automatically canceled once trading ends for each affected pair.

Binance will discontinue trading bots services for unauthorized stablecoin spot trading pairs on March 31 at 03:00 (UTC). Users must update or cancel their trading bots before this deadline to prevent potential losses. Trading bot services for MiCA-compliant stablecoins will remain unaffected.

Notably, Binance spot copy trading for EEA users was discontinued on June 26, 2024.

Incentives to encourage transition

To facilitate the transition for affected EEA users, Binance has introduced various rewards and incentives for EEA users. These include zero-fee trading on selected USDC pairs, exclusive savings opportunities through Binance Earn, and bonuses for trading USDC and EURI.

Binance’s efforts to comply with MiCA

Delisting non-compliant stablecoins is part of Binance’s broader efforts to comply with MiCA. Earlier in 2025, the exchange changed its deposit and withdrawal procedures in Poland in preparation for MiCA’s full implementation in January 2025.

Under MiCA, only licensed entities can issue stablecoins to EEA residents. Some issuers, such as Circle, have already obtained authorization to provide stablecoins like EURC and USDC.

Other centralized exchanges have taken similar delisting steps. For example, Coinbase Europe delisted Tether in December 2024 to ensure compliance.

Companies wishing to issue stablecoins in the EEA must establish a presence in the region and apply for a MiCA license. The application process is clear-cut, with all requirements outlined in the MiCA framework and the DTI quick guide.

Tether’s delisting in the EEA: Challenges and responses

The delisting of Tether in the EEA is not surprising, given its history of scrutiny regarding whether it holds sufficient US dollars to back all USDT tokens in circulation. In 2021, the US Commodity Futures Trading Commission (CFTC) fined Tether $41 million for misleading claims that each USDT token was fully backed by cash reserves.

Additionally, Tether paid $18.5 million in fines and was banned from trading in New York as part of a settlement with the New York Attorney General (NYAG). These issues have raised concerns about the stablecoin’s ability to maintain its dominance.

In response, Tether has appointed a new chief financial officer, Simon McWilliams, marking a step toward its first full financial audit. The company highlights its quarterly attestations and transparency reports to demonstrate compliance. 

Tether has also expressed openness to being audited by major accounting firms such as Deloitte, PricewaterhouseCoopers, Ernst & Young and KPMG. Additionally, at the start of 2025, Tether announced that it would move all its subsidiaries to El Salvador, which made Bitcoin legal tender in 2021, citing a favorable regulatory environment.

What is MiCA?

The Markets in Crypto-Assets Regulation (MiCA) is the EU’s comprehensive framework for regulating crypto-assets. This framework aims to assure transparency, investor protection, and market stability. 

Taking effect in 2024, MiCA applies to ARTs, EMTs and CASPs. This regulation sets clear rules for issuing, public offerings and trading these assets, requiring issuers and service providers to obtain authorization.

MiCA looks to prevent fraud, enhance consumer trust and generate a unified regulatory environment throughout the European Union. CASPs must adhere to rigorous operational and disclosure requirements, particularly when offering ARTs and EMTs. Assets that are not compliant with the regulation face restrictions on trading, with firms being required to phase them out by the early part of 2025.

Unlike decentralized cryptocurrencies like Bitcoin (BTC), which remain largely unaffected, MiCA focuses on stablecoins and intermediary-based services. It marks a significant step toward institutional adoption of crypto while balancing innovation with regulatory oversight. 

MiCA titles III and IV

While MiCA consists of seven titles, titles III and IV deal with the stablecoins.

Titles III and IV of the MiCA introduce a structured framework for regulating ARTs and EMTs in the EU. These rules aim to enhance stability, transparency and consumer protection in the crypto market by setting strict requirements for issuers and service providers.

ARTs – Title III

ARTs derive value from multiple assets, such as fiat currencies or commodities, and aim to minimize volatility. Issuers must obtain authorization from national regulators and, if deemed significant, are subject to oversight by the EBA.

Key obligations include:

• Reserves: Backing ARTs with secure, low-risk assets like government bonds.
• Transparency: Regular audits and public reporting on reserves.
• Redemption rights: Investors must be able to redeem ARTs for underlying assets at any time.
• Consumer protection: Issuers must publish detailed white papers and ensure fair marketing practices.

Did you know? MiCA includes provisions to detect and prevent market abuse, such as insider dealing and market manipulation.

EMTs – Title IV

A single fiat currency backs EMTs and maintains a 1:1 value. Issuers must hold an electronic money institution (EMI) license and comply with financial regulations.

Requirements include

• Issuance and redemption: Tokens must be issued and redeemed at par value.
• Reserves: Funds must be held in low-risk, liquid assets in segregated accounts.
• AML and CTF compliance: Strong Anti-Money Laundering measures are mandatory.
• Consumer protection: Clear disclosures and dispute resolution mechanisms must be in place.

MiCA aims to boost investor confidence, ensure market integrity and drive long-term innovation. It endeavors to eliminate bad actors by enforcing compliance while fostering a more secure and sustainable crypto ecosystem.

Criticisms of the MiCA regulations

Critics argue that stringent Markets in Financial Instruments Directive (MiFID) or Markets in Financial Instruments Regulation (MiFIR) obligations could impact CASPs looking to maintain liquidity on EU platforms. 

On the other hand, non-EU platforms without these transparency requirements might capitalize on this advantage, attracting trading activity and liquidity away from the EU-based CASPs.

The implementation of MiCA regulations has sparked concerns among industry leaders. Tether CEO Paolo Ardoino, for instance, has criticized the mandate requiring stablecoin issuers to maintain at least 60% of reserves in EU banks. He cautioned that this could pose financial risks, as deposits over 100,000 euros remain uninsured. Ardoino says MiCA regulations create systemic risk, impacting stablecoins and the wider banking sector.

Despite criticisms, MiCA remains a foundational regulatory framework in Europe, a key economic region. While it has its shortcomings, it provides a basis for the crypto sector’s operations in the region. As the sector evolves, regulators will gain deeper insights, leading to further refinement of the framework.