It’s a strategic win for Circle’s USDT, as crypto exchange Binance plans to delist Tether’s USDT and eight other non-MiCA-compliant stablecoins within the European region by March 31, 2025.
According to an official blog post from the exchange, Binance’s decision to delist the non-MiCA-compliant stablecoins aligns with the company’s efforts to comply with the Markets in Crypto-Assets (MiCA) regulations, which aim to introduce strict operational rules for digital assets within the European Union market.
Binance to Delist Non-MiCA Compliant Stablecoins
9 non-MICA Compliant Stablecoins Affected
The statement from Binance revealed that apart from Tether’s USDT, other non-MiCA compliant stablecoins were affected by the decision, including First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Dai (DAI), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and Paxos Gold (PAXG). According to the exchange, users can continue trading the affected assets until the deadline, when they will be removed from the market.
In what appears to be a strategic win for Circle’s USD Coin (USDC), Binance announced that it will introduce the stablecoin to margin trading beginning March 27. According to the exchange’s CEO, Richard Teng, all remaining balances after the non-MiCA complaint stablecoins have been delisted will be converted to USDC. The exchange has advised traders to manage their positions well before those dates to avoid liquidation.
Rule affects 9 Non-MiCA compliant stablecoins
MiCA Rules Took Effect in December 2024
MiCA is a legislative body operating within the European Union aiming to implement regulations for the smooth operation of digital assets and consumer protection. Several leading cryptocurrency exchanges have already delisted Tether’s USDT following the MiCA rules taking effect in December 2024. The firm’s statement said:
“We are changing the availability of non-MiCA compliant Stablecoins in the EEA to comply with regulatory requirements. Impacted assets are USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC and PAXG. Binance will restrict the availability of Spot trading pairs with non-MiCA Compliant Stablecoins for EEA users.”
Binance delisting a strategic win for USDC
Strategic Win for Circle’s USDC
Despite being the world’s largest stablecoin by market capitalization, Tether’s USDT has taken a lot of heat due to the new MiCA requirements. According to available data, Tether’s market capitalization has dropped by $2 billion since December 2024, when most exchanges delisted it. Only Binance has stayed away from the trend and has kept Tether’s products within the EU until now.
The news of Binance delisting Tether’s USDT and the other smaller non-MICA compliant stablecoins could eventually work to the advantage of Tether’s most significant competitor, Circle’s USDC. It should be noted that Circle had already predicted how its USDC stablecoin was likely to take over the European digital asset market after the MiCA regulations took effect.
Conclusion
The decision by Binance to finally delist USDT stablecoin is another piece of bad news for Tether, considering that Coinbase has also announced plans to delist it if the US government should pass laws similar to the MiCA-style stablecoin regulations. Tether remains adamant it won’t allow an independent audit of its reserves, which would be integral to future compliance.
Frequently Asked Questions (FAQs)
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What does MiCA mean in regulation?
MiCA, the Markets in Crypto-Assets Regulation, is part of the EU’s strategy to regulate crypto-assets and digital financial services.
Which stablecoins are regulated under MiCA?
MiCA divides stablecoins into two main types: e-money tokens (EMTs), which aim to stabilize their value by referencing a single official currency, similar to electronic money, and asset-referenced tokens (ARTs), which fall within the first category.
What is the MiCA regulation in a nutshell?
MiCA governs crypto-assets not covered by existing financial services legislation, such as security or e-money tokens.
What are the effects of MiCA regulation?
The regulations introduce stricter requirements for crypto-asset service providers, including licensing, market abuse prevention, and anti-money laundering controls.
Appendix: Glossary of Key Terms
Mica: A framework created by the European Commission (EC) that focuses on maintaining financial stability within the crypto industry.
Crypto: Any form of currency that exists digitally or virtually and uses cryptography to secure transactions
Stablecoin: A digital asset designed to maintain a stable value, often pegged to a fiat currency like the US dollar
Crypto Delisting: When a token is delisted, it typically means that investors can no longer buy or sell the asset through that particular exchange.
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Tom Nyarunda is a writer with in-depth knowledge of blockchain, cryptocurrency, NFTs, and SaaS. Based in Kenya, Tom has devoted his time to the study of Bitcoin and cryptocurrency, as he believes them to be incorruptible products of the future.
