Bye Bye Europe: As Binance’s Official Stopped Its USDT Trading in the EEA Region

The post Bye Bye Europe: As Binance’s Official Stopped Its USDT Trading in the EEA Region appeared first on Coinpedia Fintech News

Binance, one of the biggest cryptocurrency exchanges, has officially stopped spot trading pairs for USDT and eight other stablecoins in the European Economic Area (EEA). This move is part of its efforts to comply with the Markets in Crypto-Assets Regulation (MiCA), a new set of rules designed to regulate digital assets in the region.

Binance Stopped USDT Trading in EEA

On March 3rd, the exchange has officially informed users about the planned delisting, setting a deadline of March 31 for non-MiCA-compliant tokens. Despite the removal of these trading pairs, users in the EEA can still hold and trade the affected stablecoins through perpetual contracts.

In addition to the delisting af USDT, biancne includes other stablecoins such as Dai (DAI), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), Anchored Euro (AEUR), TerraUSD (UST), TerraClassicUSD (USTC), and PAX Gold.

Perhaps, Binance had told its users to convert their holdings into MiCA-approved stablecoins like USDC or Eurite (EURI). Moreover, they have the Fiat trading options, such as the euro, remaining available as alternatives.

Other Exchanges Follow Suit

Following the Binance foot step Kraken has also delisted USDT and other stablecoins in the EEA, to comply with MiCA. The delisted stablecoins on Kraken’s exchange include PayPal USD (PYUSD), Tether EURt (EURT), and TrueUSD (TUSD).

Meanwhile, Coinbase had already delisted USDT, anticipating MiCA’s impact, while a few other crypto exchange continues to trade the token as they wait for further regulatory updates.

Impact On Crypto Market

The removal of Tether’s flagship stablecoin, USDT, could affect market liquidity in Europe, making transactions slower and increasing costs for traders. Many investors are concerned about whether alternative stablecoins can provide the same level of reliability as USDT.