Users in the European Economic Area can still hold non-MiCA-compliant tokens, like Tether’s USDt, and trade them through perpetual contracts.

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Binance has ceased spot trading pairs with Tether’s USDt in the European Economic Area (EEA) to align with the Markets in Crypto-Assets Regulation (MiCA).

The cryptocurrency exchange has also removed spot trading pairs involving multiple non-MiCA-compliant tokens in the EEA, following a plan announced in early March, according to Cointelegraph.

Although Binance no longer offers spot trading for tokens like USDt in the EEA, users can still hold these tokens and trade them through perpetual contracts.

As previously announced by Binance, spot trading pairs for tokens that do not comply with MiCA regulations were scheduled for delisting by March 31, in accordance with a local mandate requiring the removal of such tokens by the end of the first quarter of 2025.

1. Other exchanges in the EEA are also delisting tokens

 

Binance isn't the only crypto exchange removing non-MiCA-compliant tokens from spot trading in the EEA.

For instance, Kraken stopped spot trading for certain tokens, including USDT, in the region after announcing its decision in February.

A notice on Kraken's website states that as of March 24, USDT was placed in sell-only mode for EEA users. Currently, the platform does not permit EEA users to purchase the affected tokens.

 

2. ESMA does not ban custody of tokens that do not comply with MICA regulatins

Binance and Kraken's decision to continue offering custody services for such tokens is consistent with prior guidance from MiCA compliance authorities.

On March 5, an ESMA spokesperson informed Cointelegraph that providing custody and transfer services for non-MiCA-compliant stablecoins does not breach the new European cryptocurrency regulations.

However, the regulator had previously advised European crypto asset service providers to cease transactions involving these tokens after March 31, creating some uncertainty regarding MiCA requirements.

3. Impact of European crypto users

Binance's latest move has a substantial effect on European traders and investors, compelling them to adjust their strategies to align with the new regulations. The stringent enforcement of MiCA could even push some companies to explore more crypto-friendly markets, such as the United States, where regulations are perceived as more accommodating.

Despite the constraints imposed by MiCA, certain crypto platforms like MEXC continue to provide USDT spot trading in Europe. These platforms remain committed to ensuring access to USDT for European users while modifying their services to meet the evolving regulatory standards.

4. Is USDC the ultimate winner ?

With Binance halting USDT spot trading in Europe, USDC—Tether’s main competitor—appears to be the biggest beneficiary. In 2024 alone, its weekly transaction volume surged to $23 billion, a significant rise from $9 billion in 2023. The question now is: what will happen in 2025 as USDT’s market share declines?

Adding to its momentum, Dubai officially recognized USDC as an authorized crypto token within the Dubai International Financial Centre (DIFC) in February 2025, further solidifying its global adoption.

Beyond Binance, Kraken has also discontinued USDT trading in Europe in response to MiCA regulations. As a result, crypto users across the European Economic Area (EEA) must adapt to this evolving regulatory environment by shifting their portfolios toward compliant stablecoins and aligning with the new rules in place.