Cryptocurrency platforms Binance and Kraken terminate USDT spot trading pairs within the European Economic Area (EEA) to adhere to MiCA regulations.
Binance Tosses Out USDt and More! Bracing for MiCA Regulations
Listen up, folks! Binance, the popular crypto exchange, is cleaning house in the European Economic Area (EEA) to comply with the Markets in Crypto-Assets Regulation (MiCA). This means saying adieu to Tether's USDt in spot trading pairs - a swift move before the MiCA deadline of March 31, 2025.
Cointelegraph spills the beans that Binance has been marching to this plan since early March, and has taken it a step further by booting out non-MiCA compliant coins. Now, EEA users still got their impacted tokens, but they're restricted to trading 'em through perpetual contracts. Spot trading pairs are sadly a thing of the past in this region.
The Regulatory Tsunami - Exchanges Follow Suit
Binance isn't the only one hopping on the MiCA train. Kraken, another crypto heavyweight, has jumped in, removing trading pairs involving USDT and other non-compliant assets. Kraken dropped USDT in the EEA on March 24, restricting it to sell-mode only, according to the official announcement. Sayonara to purchasing the delisted tokens for EEA users.
Besides USDT, Binance has called it quits on spot trading pairs for Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and PAX Gold (PAXG). Meanwhile, Kraken's delisting binge has affected USDT, PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD, and TerraClassicUSD.
As the MiCA enforcement gathers steam, more exchanges might take a leaf out of Binance and Kraken's book to stay compliant in the EEA market.
Riding the Cryptowave - Even in the Face of Regulation
Decentralized exchanges (DEXs) prove to be a loophole to access restricted assets like USDT. As exchanges keep shaking things up, we'll keep pinning down the latest trends and insights for you, right here! Stay tuned!
- Binance and Kraken, both prominent in the finance and fintech industry, have started eliminating non-MiCA compliant assets such as USDT from their spot trading pairs in the European Economic Area (EEA), adhering to the MiCA regulations.
- This move by these exchanges has resulted in the restriction of USDT for trading purposes in spot markets, while still allowing it in the form of perpetual contracts for EEA users.
- Along with USDT, other tokens like Dai, First Digital USD, TrueUSD, Pax Dollar, Anchored Euro, TerraUSD, TerraClassicUSD, and PAXG have been removed from Binance's spot trading pairs, mirroring Kraken's action against USDT, PayPal USD, Tether EURt, TrueUSD, and TerraClassicUSD.
- As more regulatory pressure increases, other exchanges might follow Binance and Kraken's approach to ensure compliance within the EEA market, fostering a shift in the crypto markets landscape.
