Binance is shaking up the crypto market in Europe, ditching Tether (USDT) and eight other stablecoins for spot trading within the European Economic Area. Blame it on MiCA, the EU’s new digital asset regulation, which is forcing exchanges to rethink their token lineups.
Effective March 31st, Binance users in the EEA will find themselves unable to spot trade USDT, Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and PAX Gold. Although spot trading these stablecoins is out, Binance clarifies that holding and trading them via perpetual contracts remains an option.
Binance is nudging users to switch to stablecoins that play by MiCA’s rules, suggesting USDC and Eurite (EURI) as alternatives. For those preferring traditional currency, euro trading pairs remain unaffected.
Binance isn’t riding solo on this regulatory wave. Kraken has also dropped USDT and other stablecoins in the EEA to comply with MiCA, including PayPal USD (PYUSD), Tether EURt (EURT), and TrueUSD (TUSD). Coinbase, anticipating the regulatory shift, already axed USDT from its platform. Other exchanges are reportedly watching closely, waiting for further regulatory signals.
The move to remove USDT, a heavyweight stablecoin, could ripple through European crypto liquidity. Traders might brace for potentially slower trades and increased costs. Questions are circulating about whether MiCA-compliant stablecoin replacements can match USDT’s reliability and efficiency.