Binance has stopped spot trading pairs with Tether's USDt (USDT) in the European Economic Area (EEA) to adhere to the Markets in Crypto-Assets Regulation (MiCA). This follows a plan announced in early March 2025, which required exchanges to delist non-MiCA-compliant tokens by the end of the first quarter of that year. Users can still hold and trade USDt through perpetual contracts on Binance, even though spot trading has been discontinued. Notably, Binance is not alone in this decision; other exchanges like Kraken have also delisted USDT trading pairs in the EEA. Kraken restricted USDT to sell-only mode on March 24, preventing users there from purchasing the affected tokens. In addition to USDt, Binance has also delisted other non-MiCA-compliant tokens including Dai, TrueUSD, and Pax Dollar, among others. Kraken's delisting affected five tokens, including its own proprietary currency, PayPal USD (PYUSD). Despite these delistings, both Binance and Kraken maintain that custody services for non-MiCA-compliant tokens can still be offered, as clarified by the European Securities and Markets Authority (ESMA), which stated that such custody does not violate the new European crypto laws. This guidance aims to alleviate confusion surrounding MiCA regulations and their implications for crypto service providers.
Binance has ceased spot trading pairs with Tether's USDt (USDT) in the European Economic Area (EEA) to comply with the Markets in Crypto-Assets Regulation (MiCA). This decision aligns with a plan that was announced in early March 2025, mandating exchanges to eliminate non-MiCA-compliant tokens by the end of the first quarter of that year. Although spot trading has been halted, users can still hold and trade USDt through perpetual contracts on the Binance platform.
Binance is not the only exchange taking this step; Kraken has also delisted USDT trading pairs in the EEA. Kraken transitioned USDT to sell-only mode on March 24, preventing users within the EEA from purchasing the affected tokens.
In addition to USDt, Binance has delisted several other non-MiCA-compliant tokens, including Dai, TrueUSD, and Pax Dollar. Kraken's delisting strategy involved five tokens, among which is its proprietary cryptocurrency, PayPal USD (PYUSD).
Despite the delistings, both Binance and Kraken have confirmed their ability to provide custody services for non-MiCA-compliant tokens, as the European Securities and Markets Authority (ESMA) clarified that offering such custody does not breach the new European cryptocurrency regulations. This communication aims to reduce confusion regarding MiCA regulations and their implications for cryptocurrency service providers.