MiCA Shake-Up: Binance and Kraken Drop USDT Spot Trading in EEA
Binance has moved to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA) by discontinuing spot trading pairs of Tether’s USDT and other non-MiCA-compliant tokens for users in the European Economic Area (EEA). This action is part of a broader industry shift as crypto exchanges adjust to the evolving regulatory landscape in Europe. Also read: Austrian Fintech Unicorn Bitpanda Secures MiCA License to Operate Across Europe While spot trading pairs involving USDT and other stablecoins such as Dai (DAI), TrueUSD (TUSD), Pax Dollar (USDP), and others have been delisted, Binance users in the EEA can still custody these tokens and trade them through perpetual contracts. MiCA Impact on Crypto Trading The regulations establishes a framework to ensure the orderly and secure operation of cryptocurrency markets within the EU. Under these rules, tokens that fail to meet MiCA compliance requirements are subject to delisting by exchanges operating in the EEA. Binance’s decision follows a similar move by Kraken, which placed USDT in sell-only mode in the EEA starting March 24, 2025. Unlike Binance, Kraken’s policy prevents users from buying the affected tokens, allowing only the sale of existing holdings. Also read: EU Investigates OKX Over Alleged Role in Bybit Hack Money Laundering Despite the removal of non-compliant tokens from spot trading, the European Securities and Markets Authority (ESMA) has clarified that providing custody and transfer services for these tokens does not violate MiCA. As a result, platforms like Binance and Kraken continue to allow users to hold and transfer such assets, albeit with restricted trading options. Industry-Wide Adjustments to MiCA Compliance The MiCA regulation is designed to reduce the risks associated with cryptocurrency markets, promoting transparency, consumer protection, and financial stability. Exchanges serving EEA users are increasingly taking steps to delist or restrict trading of stablecoins and other tokens that fail to comply with MiCA requirements. Also read: ECB’s Francois Villeroy Warns: US Crypto Policy a ‘Time Bomb’? As the final deadline for compliance approaches in 2025, the cryptocurrency landscape in Europe is undergoing significant change. Tokens such as First Digital USD (FDUSD), Pax Dollar (USDP), TerraClassicUSD (USTC), and others are subject to further restrictions across platforms. However, ESMA’s clarification regarding custody services has provided some flexibility for exchanges. This enables platforms to continue offering custodial support while delisting certain tokens from trading. As Binance and Kraken adjust their operations to meet MiCA obligations, crypto traders in the EEA should anticipate further regulatory-driven changes in how they can access and manage non-compliant tokens. Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations. View all posts