MiCA: Binance Will Remove Several Stablecoins Starting March 31st

Europe, the undisputed champion of regulatory paperwork, is making a splash with MiCA, this legal framework tailored to tame digital assets. While some stablecoins have been endorsed, others have not had this luck, starting with the famous USDT from Tether. And for Binance users in the European Economic Area (EEA), the news looks bitter: the crypto giant is set to cut ties with nine stablecoins starting from March 31.

Binance forced to sort it out

The axe of MiCA for crypto exchanges has fallen, and Binance is forced to delist several stablecoins, including USDT, DAI, and FDUSD. Out go the non-compliant trading pairs, but no panic, holders of these tokens can still convert via Binance Convert.

The announcement sent shockwaves, especially on X, where Michela S. shared the news:

“To all our customers in the EU: We are making changes to the availability of non-compliant stablecoins under MiCA in the EEA to comply with regulatory requirements.”

In other words, Binance really had no choice.

In detail, here’s what is going to change:

• Removal of non-compliant crypto trading pairs starting March 31, 2025;
• Automatic conversion of certain stablecoins to USDC starting March 27 for margin accounts;
• Continuance of custody for non-compliant stablecoins, but impossible to trade them.

But beyond these simple technical adjustments, a question arises: will Binance, the issuer of BNB, manage to secure its regulatory sesame in Europe by 2025?

A crypto regulation that reshuffles the cards

Behind this great purge, the entire crypto industry is shaking. MiCA now imposes strict rules on the reserves of stablecoins, a constraint that hasn’t gone unnoticed by observers like Midas:

“Stablecoins are supposed to be ‘safe’ and ‘stable.’ But beneath the surface, existing models have introduced risks that many have overlooked.”

What’s the culprit? An economic model that has prioritized yield over stability. In the pursuit of profit, some stablecoin issuers invested their reserves in risky assets.

Result: cryptocurrencies supposed to be stable find themselves exposed to market fluctuations.

The application of MiCA thus calls into question the entire stablecoin ecosystem, forcing industry players to rethink their strategy. Some, like Circle with USDC, are leveraging this new landscape to establish themselves as compliant leaders. Others, like Tether, must juggle with more drastic regulatory adjustments.

The consequences could be severe: reduction in the diversity of stablecoins, market concentration, and potential increase in fees for users.

MiCA is thus changing the game and forcing exchanges to revise their practices. Binance is not the only one adapting: OKX, Crypto.com, and Bybit have already taken the lead. By tightening the screws, Europe hopes to establish itself as a model in crypto regulation. But will this strategy be enough to prevent a crisis?