- Binance stops all EEA spot trading operations for USDT in compliance with MiCA regulatory standards.
- Stablecoins such as USDT must comply with MiCA requirements through full transparency systems to gain EU market permissions.
Binance declared the closure of spot trading for Tether (USDT) in the European Economic Area (EEA). Binance executes this policy to follow the Markets in Crypto-Assets Regulation (MiCA) under European Union legislation. MiCA creates an extensive regulatory system targeted at managing stablecoins though it focuses primarily on specifying reserve rules for these digital assets.
The EEA users of Binance faced spot trading suspension for multiple stablecoins and tokens including USDT alongside their different stablecoin tokens and other token products. The new MiCA standards have required Binance to remove Dai (DAI) and First Digital USD (FDUSD) and TrueUSD (TUSD) along with other tokens from spot trading.
However, the EEA-based users of Binance can maintain and conduct trade operations through perpetual contracts with their forbidden tokens. Binance performed this removal of tokens in accord with its established commitment to follow MiCA standards by completing token deletions by March 31, 2025.
MiCA’s Uncertainty and Its Impact on Crypto Market Compliance
Binance joined Kraken in facing regulatory requirements to meet MiCA standards and thus both platforms took parallel steps in their responses. During this year Kraken took action to remove PayPal USD and USDT tokens because they did not comply with MiCA requirements. The delisted tokens will not interrupt customer services for non-compliant tokens between Binance and Kraken. ESMA rules that allow token transactions which the institution earlier told to stop does not violate MiCA regulation. The regulatory guidelines provided by MiCA remain uncertain to stakeholders regarding its complete set of obligations.
The introduction of MiCA establishes EU-wide cryptocurrency standards to promote market transparency while ensuring security and maintenance of market stability. Under new requirements of MiCA stablecoins such as USDT must establish transparent and stable reserve assets if they want to continue circulating within EU territory. Trading platforms that wish to sustain their operations with these tokens must fulfill the requirements of these new rules.
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