Binance has ceased spot trading pairs with Tether’s USDt within the European Economic Area (EEA) to adhere to the Markets in Crypto-Assets Regulation (MiCA).
The cryptocurrency exchange Binance has removed spot trading pairs for multiple tokens that do not comply with MiCA regulations in the EEA, following a strategy revealed in early March, as reported by Cointelegraph.
Although spot trading pairs for tokens like USDt (USDT) have been removed from Binance, users in the EEA can still hold the impacted tokens and trade them via perpetual contracts.
USDT remains available for perpetual trading on Binance. Source: Binance
As per Binance’s previous announcement, the removal of spot trading pairs for tokens not compliant with MiCA was scheduled to occur by March 31, aligning with a local mandate to eliminate such tokens by the end of the first quarter of 2025.
Delistings by other exchanges in EEA
Binance is not the sole cryptocurrency exchange that is removing non-MiCA-compliant tokens for spot trading in the EEA.
Other exchanges, including Kraken, have also delisted spot trading pairs for tokens such as USDT within the EEA following announcements made in February.
According to a notice on Kraken’s website, the exchange limited USDT to sell-only mode in the EEA as of March 24. As of now, the platform does not permit its EEA users to purchase the impacted tokens.
Kraken imposed a sell-only restriction on USDT in the EEA on March 24. Source: Kraken
In addition to other non-MiCA-compliant tokens, Binance has also removed spot trading pairs for Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC) and PAX Gold (PAXG).
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Kraken’s delisting plan in the EEA was limited to five tokens: USDT, PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD, and TerraClassicUSD.
ESMA does not restrict custody of non-MiCA-compliant tokens
Binance and Kraken’s decision to uphold custody services for non-MiCA-compliant tokens is in agreement with a previous update from MiCA compliance regulators.
On March 5, a spokesperson for the ESMA informed Cointelegraph that custody and transfer services for non-MiCA-compliant stablecoins do not contravene the new European cryptocurrency regulations.
Conversely, the same regulatory body previously advised European crypto asset services providers to cease all transactions involving the concerned tokens post-March 31, causing a degree of confusion regarding MiCA stipulations.
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