Binance Halts Tether USDT Trading in Europe: MiCA Compliance Takes Center Stage

Binance, a leading cryptocurrency exchange, has ceased spot trading pairs involving Tether’s USDT within the European Economic Area (EEA). This action is a direct response to the implementation of the Markets in Crypto-Assets Regulation (MiCA).

This delisting is part of a broader strategy outlined by Binance earlier this year. As anticipated, the exchange removed spot trading pairs for several tokens deemed non-compliant with MiCA by the March 31st deadline. While spot trading of USDT is no longer available in the EEA, users can still maintain custody of their USDT and engage in perpetual contract trading on the platform.

This move follows a similar decision by Kraken, another major exchange. Kraken restricted USDT to sell-only mode in the EEA and ultimately halted buying as well. Other exchanges are expected to align their practices with MiCA’s stipulations.

Beyond USDT, Binance also delisted spot trading for other non-MiCA-compliant tokens, including DAI, FDUSD, TUSD, USDP, AEUR, UST, USTC, and PAXG. Kraken’s delisting affected USDT, PYUSD, EURT, TrueUSD, and USTC.

The European Securities and Markets Authority (ESMA) has clarified that while trading of non-MiCA compliant tokens is restricted, custody services remain permissible. This highlights the nuanced approach to compliance currently being navigated by cryptocurrency exchanges operating within the EEA.

The evolving regulatory landscape in Europe continues to shape the strategies of global cryptocurrency exchanges. This event underscores the importance of adapting to the new regulatory requirements of MiCA, and further regulatory clarity is awaited to ensure industry-wide compliance.

This situation highlights the ongoing challenges in balancing regulatory compliance with the demands of the cryptocurrency market. Stay tuned for updates as the situation unfolds and MiCA’s effects continue to ripple throughout the industry.