Binance Sets Delisting Deadline for Non-MiCA Stablecoins

Binance has announced that it will delist non-MiCA compliant stablecoins for users in the European Economic Area (EEA) starting March 31, as part of its effort to comply with Europe’s Markets in Crypto-Assets Regulation (MiCA). The stablecoins affected by this move include Tether (USDT), First Digital USD, and DAI.

In a press release issued on March 3, Binance stated that these non-compliant stablecoins can still be traded in spot pairs until the deadline. However, after March 31, these pairs will be fully removed from the platform. Users will still be able to withdraw or deposit non-compliant stablecoins after the deadline, but trading them will no longer be allowed.

The update will also impact margin trading. From March 27, non-compliant margin trading pairs will be removed, and Binance will automatically convert any remaining assets to USDC. The exchange has advised users to convert their margin assets before the deadline to avoid liquidation risks.

To facilitate the transition, Binance will offer zero-fee trading on certain pairs and rewards for users who trade USDC or Eurite (EURI), which are MiCA-compliant stablecoins. The exchange has also recommended that users update their Binance Earn and Loan holdings to compliant stablecoins.

This move is in line with MiCA, which aims to create clear regulatory guidelines for cryptocurrency markets in Europe. Analysts have suggested that MiCA has prompted a rush among stablecoin issuers to comply, which could benefit Circle’s USD Coin (USDC) while potentially putting pressure on other stablecoins like Tether.

Tether’s CEO, Paolo Ardoino, criticized MiCA for requiring stablecoin issuers to hold at least 60% of their reserves in E.U. bank accounts, arguing that this poses financial risks due to the lack of insurance for deposits exceeding €100,000.