To comply with European regulations, Binance has stated that it will stop allowing users in the European Economic Area (EEA) to trade pairs involving stablecoins that do not comply with MiCA—basically, non-compliant stablecoins.
The move now affects one of the most widely traded stablecoins, $USDT; another stablecoin that is very widely traded, $DAI; and a not insignificant stablecoin, $TUSD.
The MiCA Regulation and Its Impact on Binance Users
The forthcoming regulation of the European Union’s Markets in Crypto-Assets (MiCA) is set to assume a central position in determining the destiny of cryptocurrencies in that part of the world. Under the new rules, stablecoins that don’t measure up to MiCA’s standards will no longer be permitted for trading on Binance’s platform by users in the EEA. In response, the globally leading crypto exchange has announced that it will, well, un-announce that trading pairs with non-compliant stablecoins will be taken off its platform by the end of March 2025.
Among the stablecoins affected by this decision are major assets like $USDT (Tether), $DAI (Dai), $TUSD (TrueUSD), $FDUSD (First Digital Dollar), $USDP (Pax Dollar), $AEUR, $UST (TerraUSD), $USTC (Terra Classic USD), and $PAXG (Paxos Gold). Users who hold or trade any of these non-compliant stablecoins are advised to convert them into MiCA-compliant stablecoins like $USDC, $EURI, or the regular euro (EUR) well before the cutoff date to avoid any disruption in trading.
The communication also spelled out that users in the EEA can continue to hold, put into circulation, or take out of circulation any stablecoin that doesn’t fall under MiCA after the 31st of March, 2025. These are stablecoins that don’t meet MiCA’s freedom to provide services under the European Securities and Markets Authority’s definition of a financial instrument. However, those using Binance won’t be able to circulate those stablecoins on the platform anymore.
A Smooth Transition for Binance Users
To minimize any potential issues, Binance is advising users to convert their stablecoins that do not comply with regulations to MiCA-compliant options like USDC. The exchange set a deadline of March 31, 2025, at 23:59 UTC, for all non-compliant stablecoin pairs to be removed from the spot trading market. After that cutoff, users may find themselves in a trading jam if they can’t get access to their funds.
Ahead of this switch, Binance is taking further actions to ensure that users with margin accounts come to no harm. It is no longer possible to trade in stablecoins that are not compliant with the AMF. These stablecoins have been identified. Any margin trading that does involve them must stop. This work must be completed by the morning of March 27, 2025. By then, all margin trading involving non-compliant stablecoins must have ceased. Affected accounts: Cross Margin, Isolated Margin, and anyone trying to hook up a non-compliant stablecoin to their margin trading.
BINANCE TO DELIST ALL NON-MICA COMPLIANT STABLECOIN TRADING PAIRS IN THE EEA REGION
– @Binance, a leading cryptocurrency platform, has announced changes to its stablecoin offerings for users in the European Economic Area (EEA).
– The exchange’s move comes in response to new… https://t.co/iTzaLwK2pb pic.twitter.com/oToVcZyGMe
— BSCN (@BSCNews) March 3, 2025
Impact on Binance Earn, Loans, and Dual Investment Products
The modifications that comply with MiCA are also anticipated to have an effect on users of Binance’s Earn, Loans, and Dual Investment services, who are participating in these services. The deadline of March 31, 2025, mandates that these users switch their holdings or collateral to compliant stablecoins, like USDC, to keep using these services. After the deadline, these users are able to sell stablecoins that are not compliant through Binance Convert, and can utilize these non-compliant stablecoins for any purpose that might require greater flexibility. Service in any other Binance product that is not compliant with MiCA will have limited use until compliance is achieved.
Why This Change Is Happening
Binance’s choice to remove stablecoins that do not comply with MiCA from its trading platform is part of an overall strategy in the EU of creating clear, understandable rules for crypto companies doing business in member states. MiCA—short for the Markets in Crypto-Assets Regulation, which is expected to be fully in force by 2025—aims to take a comprehensive swing at regulating not just cryptocurrencies but also crypto-service providers and issuers of so-called “cryptoassets” anywhere in the EU.
In advance of the new regulations, Binance is making certain to align with them so as to avoid any issues in continuing to serve its users in the EEA. Its approach to these regulatory changes is entirely user-friendly and already showcases a commitment to ensuring it can serve its users in the EEA while continuing to abide by local laws.
Stablecoins compliant with MiCA, like USDC and EURI, will still be able to be traded on Binance while the transition takes place. This ensures that users aren’t disrupted during the process and lets us continue to make compliant tokens necessary for crypto to work in Europe available. We aren’t making any sudden moves that would throw any of our users into an unexpected situation.
What Users Need to Do
Users in the EEA should take steps to convert any stablecoins that are not compliant with MiCA into options that are compliant, like USDC or EUR, before the March 31, 2025 deadline. To avoid any disruption, they should consider making these conversions as early as possible. There is also the feature on the platform Binance Convert that will allow users to sell leftover holdings in stablecoins that are not compliant with MiCA, providing some additional flexibility.
Binance’s warning concerning margin accounts, along with the automatic conversion of assets, serves as a vital reminder for users to manage their positions before the cutoff date.
It is also crucial for users of Binance Earn, Loans, or Dual Investment products to switch to MiCA-compliant options as soon as possible, lest any interruptions occur in their participatory rights.
To sum up, Binance is now delisting stablecoin trading pairs not in accord with the European MiCA law—but only for EEA users, which is interesting. This seems to be a pretty big hint from the exchange that it is taking steps to comply with European law. The good news for users of the exchange is that the stablecoin trading pairs they do have should comply with MiCA, so there shouldn’t be any interruptions in service.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/binance-to-delist-non-mica-compliant-stablecoins-for-eea-users-what-you-need-to-know/