Binance has announced changes to its list of available stablecoins for users from the European Economic Area (EEA). This was done to address new requirements under the MiCA framework’s regulations.
Binance Restricts Non-MiCA Stablecoins Including USDT, DAI, & FDUSD
The exchange noted that stablecoins considered to be non-compliant with MiCA, including USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC, and PAXG, will be delisted effective March 31, 2025.
Transitioning from these stablecoins to MiCA-compliant USDC and EURI is strongly recommended. Although trading these assets will be prohibited, users will still have the ability to withdraw or deposit.
Changes in Spot and Margin Trading
Binance is gradually tapering off services, and until March 31, 2025, users will still be able to trade non-MiCA compliant stablecoins in spot pairs.
After the deadline, all trading pairs associated with these stablecoins will be delisted, and users will not have the ability to hold these stablecoins anymore to sell them.
The platform will also move all remaining assets and liabilities to USDC in margin accounts. Users are instructed to do conversions before liquidation to eliminate any risks of being liquidated.
Also Read:Crypto.com Secures Full MiCA License, Expands Services Across The EU
Other Affected Binance Services
The decision also has implications for Binance Simple Earn, Dual Investment, Binance Loans, and even some services featuring VIP Loans. Users have been invited to market shift before March 31, 2025 and move the balance from non-MiCa stablecoins to compliant ones.
In addition to this, bots that trade with non-compliant stablecoin pairs will not be able to carry out trades from the date of March 31. Users are warned that bots will need to either be canceled or updated because the company is unable to endure unpredicted losses.
Impact of MiCA Regulation on the Crypto Industry
MiCA is designed to tackle concerns faced by the EU in providing effective regulation over digital assets. It is meant to invest in the well-being of its investors and, in turn, promote a more stable environment for cryptocurrencies. The law classifies stablecoins and imposes stricter requirements on their issuance and use.
Even though MiCA is specifically for the EU region, it has become a leading example of crypto regulations. Its impact can be felt all over the world. MiCA has set an example for other parts of the world on how crypto and regulations can go hand-in-hand.
The fact that a crypto exchange like Binance is taking multiple steps to stay alongside MiCA regulations shows how the industry people, too, are welcoming these regulations.
Also Read: Gemini Chooses Malta As European Hub To Get Ready For MiCA Compliance