Binance to Discontinue Support for Non-Compliant MiCA Stablecoins, Including USDT
Change is Afoot for Binance Users in EEA
Bad news for users based in the European Economic Area (EEA)—Binance, the popular cryptocurrency exchange, plans to stop supporting a handful of stablecoins due to regulatory compliance. Specifically, Binance will be saying goodbye to nine stablecoins beginning March 31, 20xx.
Here's a list of the delisted stablecoins:
- USDT
- DAI
- TUSD
- USDP
- FDUSD
- AEUR
- UST
- USTC
- PAXG
Remember, even though the spot trading pairs for these non-compliant stablecoins are being removed, you'll still be able to deposit, store, withdraw, and convert them. However, you won't be able to use them for other products or services on the Binance platform.
A Binance spokesperson told Cointelegraph, "...users will not be able to use these stablecoins for any other products or services on our platform."
The Binance team urges EEA users to convert their non-compliant stablecoins into MiCA-compliant alternatives, like USDC or EURI, or simply withdraw them to fiat currency.
This decision follows a recommendation from the European Securities and Markets Authority (ESMA), which stated that crypto assets that don't comply with MiCA should be removed from the market by March 31.
As of February 20xx, ten companies had received approval to issue stablecoins in the EEA. Notable companies include Circle, Crypto.com, and Societe Generale. Stay tuned for more compliant stablecoins as more companies adapt to the MiCA regulations.
Insights:
- The delisting of non-compliant stablecoins from Binance is a sweeping regulatory change aimed at ensuring cryptocurrency exchanges adhere to the strict rules imposed by the Markets in Crypto-Assets (MiCA) regulation.
- For EEA users, alternatives to delisted stablecoins like Tether's USDt (USDT) include stablecoins that are compliant with MiCA regulations, such as EURR and USDR, launched by StablR and structured to meet MiCA rules. Additionally, as more companies adapt to MiCA, expect new compliant stablecoins to emerge, offering a range of options for transactions within the EEA.
In response to the MiCA regulations, Binance is discontinuing support for non-compliant stablecoins, shifting focus towards finance-compliant alternatives within the European Economic Area (EEA). Users are encouraged to convert their non-compliant stablecoins, such as USDT, into MiCA-compliant stablecoins like USDC or EURI, or withdraw them into fiat currency.
