In a twist of fate that could rival the most absurd of tales, the titan of cryptocurrency exchanges, Binance, has unveiled a decree that would make even the most stoic of investors raise an eyebrow. By the end of March 2025, all non-MiCA compliant stablecoins shall be cast into the abyss for users within the European Economic Area (EEA). One can only wonder if this is a calculated move or a desperate grasp at compliance.
This proclamation comes in the wake of the EU’s Markets in Crypto-Assets (MiCA) regulations, a framework that seems to have been crafted with the precision of a surgeon’s scalpel, albeit wielded by a blindfolded apprentice. The new rules impose a veritable fortress of restrictions upon stablecoin issuers, leaving many to ponder the fate of their digital treasures.
Binance to Bid Farewell to Major Stablecoins by March 2025
In a statement that could be mistaken for a Shakespearean tragedy, Binance has announced that major stablecoins such as Tether (USDT), First Digital USD (FDUSD), TrueUSD (TUSD), Pax Dollar (USDP), DAI, and others will be stripped from the trading floor. It’s as if the exchange has decided to play a game of musical chairs, but alas, the music has stopped, and many are left standing.
In a gesture that could be seen as both benevolent and sardonic, Binance has urged its users to embrace MiCA-compliant alternatives like Circle’s USD Coin (USDC) and Eurite (EURI) before the clock strikes midnight on March 31, 2025. One can only hope that these alternatives come with a user manual, as navigating this landscape has become akin to traversing a minefield.
It is worth noting that while delisting typically sends shivers down the spines of traders, Binance has extended a lifeline of sorts. Users may still deposit, withdraw, and convert their non-compliant stablecoins through Binance Convert, as if to say, “Fear not, dear users, for we shall not abandon you completely!”
“Custody of non-MiCA Compliant Stablecoins will continue, and you will be able to withdraw or deposit non-MiCA Compliant Stablecoins at any time,” Binance proclaimed, perhaps with a hint of irony.
Changes to Trading and Margin Accounts
As the dust settles, it becomes clear that this move may send ripples through Binance’s trading activities. Margin trading pairs involving non-MiCA stablecoins will be unceremoniously delisted by March 27, 2025. In a stroke of efficiency, Binance will convert any remaining non-compliant assets in margin accounts to USDC, as if to say, “Out with the old, in with the new!”
More crucially, the exchange has implored users to convert their affected assets before this date, lest they find themselves facing the grim specter of liquidation risks. It’s a bit like being told to evacuate a sinking ship, but with the added pressure of a ticking clock.
Furthermore, all non-MiCA-compliant stablecoin pairs will vanish from spot trading by March 31, 2025. Until that fateful day, these pairs will remain available, but once they are gone, any remaining stablecoin holdings can only be sold through Binance Convert. Pending orders on these trading pairs will be canceled within 48 hours of delisting, leaving traders to wonder if they should have invested in a crystal ball instead.
In a bid to soften the blow, Binance has introduced a series of rewards and compensations for EEA users. These include zero-fee trading promotions for selected USDC pairs, rewards for trading in USDC and EURI, and special savings opportunities through Binance Earn. It’s almost as if they’re trying to sweeten the deal with a sprinkle of sugar on a rather bitter pill.
However, the implementation of MiCA regulations has not been without its critics. Tether CEO Paolo Ardoino has voiced his concerns, likening the requirement for stablecoin issuers to hold at least 60% of reserves in EU banks to a game of financial roulette. He warns that this could introduce risks, especially since deposits exceeding €100,000 are not insured. One can only imagine the conversations happening behind closed doors.
Amidst the clamor, USDT has faced delisting from numerous exchanges in the EU, including Coinbase. Yet, the stablecoin issuer maintains that this EU delisting will not significantly impact its business, as the volume from the region is but a mere drop in the ocean
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2025-03-03 17:20