Binance Delists Popular Stablecoins in Europe to Comply with MiCA
1min read Binance, one of the world's largest cryptocurrency exchanges, has announced a significant move that is set to disrupt European crypto markets. The exchange has decided to delist several popular stablecoins, including Tether's USDT, DAI, and others, from its platform within the European Economic Area (EEA). This decision is part of Binance's effort to comply with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework.
The delisting process will occur in two phases. Starting March 27, Binance will remove non-compliant stablecoin margin trading pairs from its platform. Then, on March 31, the exchange will fully delist the trading pairs involving USDT, FUSD, and DAI within the EEA. Users are advised to switch to MiCA-compliant stablecoins like Circle's USD Coin (USDC) and Eurite (EURI), or to traditional currencies like the euro (EUR).
Binance has emphasized that users will still be able to deposit and withdraw non-compliant stablecoins even after the trading pairs are removed. However, the exchange encourages users to convert these assets to MiCA-compliant stablecoins to avoid any potential disruptions in trading. To facilitate this transition, Binance is offering zero-fee trading on certain pairs and extra rewards for those trading with USDC or EURI.
While Binance is adapting to European regulations, stablecoin oversight is still being discussed in the United States. US lawmakers have introduced a new legislative proposal called the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This act aims to establish a federal regulatory framework for payment stablecoins. The bill proposes classifying approved stablecoin issuers as financial institutions under the Bank Secrecy Act (BSA) and limiting who can issue them to these institutions. It also allows state regulators to oversee stablecoins under $10 billion, addressing concerns about states competing with each other in regulation.
