Global cryptocurrency exchange Binance will no longer support Tether’s USDT and other stablecoins for customers in Europe due to non-compliance with new regulations in the region.
In an official announcement, Binance stated that starting March 31st, nine stablecoins will be delisted for users in the European Economic Area (EEA) as they do not meet the EU’s Markets in Crypto Assets (MiCA) regulations.
Binance explained, “In accordance with the latest guidance from EU authorities regarding stablecoins, we are adjusting the availability of non-MiCA compliant stablecoins in the EEA to adhere to regulatory standards. The affected assets include USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC, and PAXG.”
Despite the delisting, customers in European countries will still be able to hold, withdraw, and deposit these stablecoins on Binance after March 31st.
This decision follows a directive from the European Union’s securities regulator in January, requiring crypto firms to remove non-compliant stablecoins by the end of the first quarter of 2025.
MiCA represents new legislation in the EU that sets forth regulations covering the oversight, consumer protection, and environmental safeguards for crypto assets.
The regulatory framework aims to combat financial crimes such as market manipulation, money laundering, and terrorist financing. It also places obligations on stablecoin issuers to maintain adequate liquid reserves under the European Banking Authority.
Circle’s US dollar and euro-backed stablecoins, USDC and EURC, achieved compliance with EU laws in July 2024.
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