As of March 31, 2025, Binance will implement significant changes for users from the European Economic Area (EEA), removing nine stablecoins from trading, including the most popular Tether (USDT). This decision is a consequence of the implementation of MiCA regulations (Markets in Crypto-Assets Regulation) in the European Union. Users of the platform will need to adjust their investment strategies and take certain actions before this deadline to avoid potential issues with their assets.
Which stablecoins will be removed from Binance's offer?
According to the official announcement, Binance will remove the following stablecoins from the trading offer for EEA users:
Tether (USDT)
First Digital USD (FDUSD)
TrueUSD (TUSD)
Pax Dollar (USDP)
Dai (DAI)
Anchored Euro (AEUR)
TerraUSD (UST)
TerraClassicUSD (USTC)
Pax Gold (PAXG)
Reasons for the withdrawal of stablecoins
The main reason for this decision is to align the platform's operations with the requirements of the MiCA regulation, which came into effect in December 2024. These regulations introduce stringent criteria for stablecoin issuers operating in the European Union, aimed at enhancing consumer protection and market integrity. The European Securities and Markets Authority (ESMA) has called on all cryptocurrency service providers to completely remove tokens non-compliant with MiCA by the end of March 2025.
Change schedule on Binance exchange
Binance is gradually implementing changes to allow users to adjust to new conditions.
Changes in the spot market
Until March 31, 2025, EEA users can continue to trade non-compliant stablecoins.
After March 31, 2025, Binance will remove all spot pairs with USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC, and PAXG.
All open orders will be canceled within 48 hours after the deadline.
Changes in the margin market
As of March 27, 2025, the platform will automatically convert funds in margin accounts to USDC.
The conversion rates for USDT and FDUSD will be set at 1:1.
For DAI, USDP, AEUR, and PAXG, the rate will be set based on the opening price on March 27, 2025.
What alternatives will be available for users?
Despite the removal of some stablecoins, Binance provides alternatives compliant with MiCA.
Stablecoins compliant with MiCA
After March 31, 2025, users will be able to use the following options:
USD Coin (USDC) - stablecoin issued by Circle
Eurite (EURI) - stablecoin pegged to the euro
Trading pairs with fiat currencies, e.g., euro (EUR).
Available features for the withdrawn stablecoins
Despite trading restrictions, Binance assures that:
Holding non-compliant stablecoins will still be possible
Withdrawals and deposits of these cryptocurrencies will not be restricted
Selling non-compliant stablecoins will be possible through the Binance Convert service.
What should Binance users do before March 31?
Action list for Binance users
Close open positions with non-compliant stablecoins - especially in the margin market before March 27, to avoid automatic conversion and potential liquidation.
Convert non-compliant stablecoins to compliant alternatives - swap USDT and other withdrawn stablecoins for USDC or EURI using Binance Convert.
Adjust trading strategies - prepare to trade using USDC or EURI instead of USDT.
Update automated order settings - check and adjust all active orders with pairs containing USDT and other withdrawn stablecoins.
Update positions in Binance Earn and Loan - move funds to products offering MiCA-compliant stablecoins.
Consider taking advantage of promotions - Binance offers a range of promotions for users switching to USDC and EURI, including:
No fees for pairs BNB/USDC, ETH/USDC, and SOL/USDC for VIP users 2-9
Bonus up to 1,000,000 USDC for trading USDC or EURI
Attractive interest rate of up to 15% APR on USDC in Binance Earn
Up to 8.7% APR on EURI Flexible products.
Withdraw funds if you prefer to trade USDT - if you must continue using USDT, consider transferring funds to other exchanges outside the EEA or to decentralized wallets.
Impact of MiCA regulations on the cryptocurrency market in Europe
Approach of other exchanges to regulations
Binance is not the only platform implementing such changes. Other leading exchanges have also taken similar actions to comply with MiCA regulations.
Controversies surrounding the removal of USDT
The decision to remove USDT is controversial. Tether, the operator of USDT, expressed disappointment with these actions, claiming they could lead to a "chaotic" market and increased risk for consumers. The company also emphasizes that MiCA is still in the early stages of implementation, and its rules are not fully specified.
Summary
MiCA regulations introduce fundamental changes to the European cryptocurrency market. For Binance users in the EEA, this means the need to adapt and adjust investment strategies before March 31, 2025. Although these changes may initially cause some inconvenience, their aim is to enhance the safety and stability of the cryptocurrency market in Europe in the long run.
Users should closely monitor Binance announcements and consider taking recommended actions as soon as possible to avoid potential issues with their assets after the changes are implemented. It is particularly important to adjust trading strategies before key dates: March 27 (for margin users) and March 31, 2025 (for all spot users).