Binance Ends USDT Spot Trading in Europe to Comply with MiCA

Binance has decided to halt spot trading of Tether (USDT) within the European Economic Area (EEA) as it works to comply with the EU’s new crypto regulations under MiCA (Markets in Crypto-Assets Regulation).

This move is part of the exchange’s broader effort to align its operations with the new legal framework, which seeks to bring more transparency and stability to the crypto market in Europe.

Although Binance is discontinuing spot trading for USDT, users in the EEA will still have options to manage their assets. Holding non-compliant tokens and trading them through perpetual contracts will remain possible, allowing some level of continued activity despite the restrictions on immediate buying and selling.

This change aligns with Binance’s plan, announced earlier this year, to remove all spot trading pairs linked to non-compliant tokens by the end of March 2025. Other exchanges are also reacting to regulatory pressures. Kraken, for instance, took similar steps by delisting USDT and other stablecoins for spot trading in the EEA back in February, restricting purchases while still allowing sales.

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Alongside USDT, Binance has also removed several other tokens from spot trading, including Dai (DAI), TrueUSD (TUSD), Pax Dollar (USDP), and TerraUSD (UST). These adjustments reflect MiCA’s push for stablecoins to demonstrate clear, transparent reserves and for exchanges to ensure regulatory compliance to continue operating within the EU.

Despite these limitations, regulators have clarified that providing custody and transfer services for non-compliant tokens does not violate MiCA, although they recommend halting transactions involving unapproved assets after March 31. This guidance has left some ambiguity about how strictly the rules will be enforced.

The MiCA regulation aims to create a standardized approach to crypto regulation across Europe, particularly focusing on stablecoin reserves, service provider authorization, and improved transparency. Exchanges that wish to continue offering non-compliant tokens will need to make significant adjustments to meet these standards.

Binance and Kraken’s strategic response—limiting but not completely banning spot trading—indicates an effort to remain flexible while adhering to regulatory demands. As MiCA’s impact unfolds, non-compliant assets may gradually disappear from the European market unless they adapt to the new requirements. The ongoing changes signal a shift towards a more regulated crypto environment in the EU, pushing both platforms and users to rethink their approach to trading.

Alexander Stefanov