Binance Discontinues Non-Compliant Stablecoins in the Euro Area; Trading Ceases After March 31

Binance will remove access to non-compliant stablecoins for traders from the Euro Area. All assets not categorized as compliant according to the MiCA regulation will be phased out by March 31.
Binance will discontinue all pairs and products that feature stablecoins not compliant with the Euro Area MiCA regulation. The changes will only affect users from the Euro Area, who will have access to simple swap features.
The list of non-compliant coins includes USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC and PAXG. Binance has been unwinding products for Euro Area traders, especially derivative and passive income vaults.
The exchange is boosting the role of Circle’s USDC, which is considered MiCA-compliant due to its proof of bank reserves. USDT and algorithmic or crypto-based tokens are not considered compliant, despite holding reserves in liquid conservative investments like T-bills.
The next step in enforcing MiCA follows the recent Travel Rule, where traders with Euro Area brokerages must declare any self-custodial wallets before trading. Deposits from unknown wallets are no longer allowed and may lead to a suspended account.
Binance to discontinue derivative products, spot pairs
Traders from the Euro Area will have to convert the tokens in their Margin accounts, since derivative trading will only use compliant stablecoins from March 27. Traders are urged to convert or wait for an automated conversion into compliant assets.
Only USDT and FDUSD will be traded at a guaranteed 1:1 exchange rate. All other assets will trade based on their opening price on March 27, since some of the algorithmic stablecoins trade at a floating rate and de-peg by small margins.
See also
SEC says meme coins are not securities because they’re useless
After removing the derivative products, this time, even spot pairs will not be available and Binance urges users to convert as early as possible. The exchange will still offer custodial services for all non-compliant stablecoins and will have deposits and withdrawals available even for users from the Euro Area.
The exchange will offer USDC as the MiCA-compliant option, along with EURI and fiat EUR pairings. EURI is a newly launched stablecoin that was recently seen in the portfolio of Changpeng ‘CZ’ Zhao, and will be first distributed by Binance. The conversion will increase demand for the token.
Otherwise, Euro-pegged stablecoins like EURC have a relatively small supply of just $123M, a fraction of the dollar-denominated assets.
The conversion page offers to shift assets between the more widely used USDT and the compliant USDC. Binance’s move will add to the dominance of USDC, which has been on an expansion track in the past few months. Currently, USDT still dominates over 70% of the stablecoin market.
Binance Simple Earn and Dual Investment Holdings, any collaterals, loans and VIP loans will also have to be switched to compliant tokens. The exchange urged Euro Area traders to be proactive about rebuilding their investments by using the new set of available assets.
See also
SEC drops its cases against crypto’s TRON and Gemini
Binance remains among the top stablecoin holders
Binance now holds over 70% of stablecoins deposited to exchanges. The market operator was also the biggest recipient of new stablecoin deposits. Binance carries over $30B in stablecoins, after rapid inflows in the past couple of months. In comparison, all other exchanges carry $44B in stablecoins, with the most widely used USDT and USDC at the top.
Binance saw significant stablecoin inflows in the past months, now holding over $30B. Source: Cryptoquant
The exchange may turn into a settlement hub for switching to regulated stablecoins. The exchange has limited traffic originating from European countries but still serves some of the region’s markets.
Binance is the biggest market for USDC trading, providing the stablecoin’s most active pairs. The most active USDC markets on Binance include BTC, ETH, XPR, and SOL. The exchange currently does not have a high-capacity USDT/USDC swap market.
Binance was also prepared to replace some of the USDT on the exchange with USDC. Based on the latest proof of reserves, Binance carried a 101% oversupply of USDT. The exchange has a 141.28% reserve ratio for USDC, with an oversupply that may easily allow the exchange to provide additional tokens.
Binance is also one of the largest holders of TRON-based USDT, which is mostly used by Asian traders. Despite this, the removal of options for Euro area traders may lead to selling pressure for this asset.
Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025.
Learn More