Binance to Delist Non-MiCA Stablecoins by March 31

Binance, one of the world's major cryptocurrency exchanges, has stated that it would delist any stablecoin trading pairs that do not comply with the European Union's Markets in Cryptoassets (MiCA) laws. The change, which takes effect on March 31, 2024, will largely affect customers in the European Economic Area (EEA).

The nine biggest stablecoins that will be delisted are Tether (USDT), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Dai (DAI), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and Paxos Gold. Despite the delisting, Binance users in the EEA will still be able to deposit, withdraw, and convert these assets via Binance Convert. Non-compliant stablecoin custody providers will continue to operate.

Stablecoins that fulfill MiCA criteria, such as Circle's USD Coin (USDC) and Eurite Euro Token (EURI), will remain supported, as will fiat trading pairings. Binance is pushing users to change non-compliant stablecoins to acceptable alternatives by March 31.

This move is consistent with larger industry trends since other prominent exchanges such as Kraken and Crypto.com are planning to delist non-compliant stablecoins, including USDT, in the European market. Tether, the USDT issuer, has already been removed from the list of allowed stablecoin issuers due to heavy inspection under MiCA.

Tether CEO Paolo Ardoino has accused rivals and governmental forces of aiming to drive Tether out of the market. Ardoino stated last month that competitors are more concerned with “killing Tether” than improving their own solutions.

MiCA, which went into full force on December 30, 2024, intends to build a comprehensive regulatory framework for cryptoassets in the EU, with a focus on consumer protection and market integrity. However, full implementation of the rule is still in progress, with Level 2 and Level 3 measures, such as delegated acts and implementation instructions, yet to be completed.

MiCA requires cryptocurrency platforms operating in the EU to give customers clear and open information about the risks connected with their services. Meanwhile, stablecoin issuers must have enough reserves to back up their tokens and manage large redemption demands.

Stablecoins that get too large may face additional limitations. For example, clients who surpass a specific level may be limited to daily transactions of up to 200 million euros ($220 million). This approach aims to reduce financial stability risks and systemic issues.

As the cryptocurrency sector adjusts to MiCA's changing framework, exchanges such as Binance are making proactive efforts to assure compliance, while consumers are advised to keep informed and modify their holdings accordingly.