Binance Halts Tether USDT Trading in Europe to Comply with MiCA Regulations

Cryptocurrency exchange Binance has taken steps to align with the European Union's new cryptocurrency regulations by halting spot trading for several non-MiCA-compliant tokens in the European Economic Area (EEA). This move, part of a broader initiative outlined in early March, includes the discontinuation of spot trading pairs for Tether’s USDt (USDT) as part of the company's ongoing compliance with the Markets in Crypto-Assets Regulation (MiCA), which came into effect in 2025.

Spot Trading Delisting on Binance

As of March 31, 2025, Binance has removed the spot trading pairs for non-MiCA-compliant tokens like Tether’s USDT, alongside other tokens such as Dai (DAI), TrueUSD (TUSD), First Digital USD (FDUSD), and Pax Dollar (USDP). However, Binance’s decision to delist these tokens for spot trading does not affect their ability to be held or traded in other ways. Users in the EEA are still allowed to custody these tokens and can trade them in perpetual contracts, a form of derivative trading that remains unaffected by MiCA's requirements.

USDT is available for perpetual trading on Binance. Source: Binance

This move is part of a broader strategy to comply with European regulations, ensuring Binance meets the stipulations set out by the European Securities and Markets Authority (ESMA) regarding MiCA compliance. Binance had previously announced its intention to remove non-compliant spot trading pairs by the end of Q1 2025, aligning with the MiCA framework’s implementation timeline.

Other Crypto Exchanges Follow Suit

Binance is not alone in adapting to MiCA’s new rules. Other major exchanges, including Kraken, have also moved to delist non-compliant tokens from spot trading within the EEA. Kraken had already imposed a "sell-only" restriction on USDT and other tokens on March 24, 2025, limiting the ability for EEA users to buy affected tokens. This mirrors Binance’s action, demonstrating a wider trend among exchanges in the region to comply with MiCA’s requirements.

Custody Services Still Available

Despite the delisting of non-compliant tokens from spot trading, both Binance and Kraken continue to allow users to custody and transfer these tokens. The European Securities and Markets Authority (ESMA) clarified in early March 2025 that custody and transfer services for non-MiCA-compliant tokens do not violate the new laws. This position offers reassurance to crypto users who still wish to hold these tokens within their accounts, even if they are not tradable on spot markets.

This decision aligns with previous guidance from ESMA, which had advised European crypto service providers to halt all transactions involving non-compliant tokens after March 31, 2025. However, it also reflects the complexity of interpreting MiCA's requirements, as these services are not prohibited despite the restrictions on spot trading.

Kraken restricted USDT to sell-only mode in the EEA on March 24. Source: Kraken

A New Era of Crypto Regulation

The delisting of non-MiCA-compliant tokens marks a significant shift in the way crypto assets are traded in Europe. As the MiCA framework continues to take shape, more exchanges are expected to follow suit, ensuring they meet the new regulatory standards while navigating the evolving landscape of digital asset legislation.

For now, Binance’s move to halt spot trading for tokens like USDT reflects the industry’s adjustment to MiCA and the broader trend of regulatory compliance in the global cryptocurrency market. As the MiCA regulations continue to evolve, exchanges, users, and regulators will need to adapt to a new era of digital asset governance.

Learn More:

• Binance Official Announcement

• Kraken's MiCA Compliance Updates

• European Securities and Markets Authority (ESMA)