- Binance announced that it will deslist USDT, FUSD, and DAI trading pairs in EEA.
- After March 31st, USDT, FUSD, and DAI pairs will be fully delisted from Binance.
- Starting March 27th, Binance will remove non-compliant stablecoin margin trading pairs.
Binance has announced plans to remove trading pairs involving stablecoins that don’t comply with MiCA regulations. This includes popular stablecoins like Tether’s USDT, First Digital USD (FUSD), and DAI within the European Economic Area (EEA).
This change, scheduled for March 31, is part of Binance’s effort to follow the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
Binance to Delist Non-Compliant Stablecoin Pairs by March 31
In a March 3 announcement, Binance said that non-MiCA compliant stablecoins can still be traded in spot pairs until the deadline. However, after March 31, these pairs will be removed completely.
Users in the EEA are being advised to switch to MiCA-compliant stablecoins like Circle’s USD Coin (USDC) and Eurite (EURI), or to traditional currencies like the euro (EUR). The exchange made it clear that users will still be able to deposit and withdraw non-compliant stablecoins even after the trading pairs are removed.
Related: Crypto Liquidity Surges as Stablecoin Supply Hits Record $217.8 Billion
Margin Trading Also Affected, USDC Conversion Encouraged
These changes will also affect margin trading. Starting March 27, Binance will remove margin trading pairs for non-compliant stablecoins and will automatically change any remaining assets into USDC. The exchange urged traders to convert their holdings before the deadline to avoid potential losses from liquidation.
To further encourage this shift, Binance is offering zero-fee trading on certain pairs and extra rewards for those trading with USDC or EURI.
US Stablecoin Regulation Still Under Debate
While Binance is adapting to European regulations, stablecoin oversight is still being discussed in the United States. Recently, US lawmakers introduced a new legislative proposal called the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. According to a Reuters report, this act is aimed at establishing 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.
Related: Tether Expands Beyond Stablecoins with AI, Bitcoin Tech
One important part of the bill would allow state regulators to oversee stablecoins under $10 billion. This is intended to address concerns about states competing with each other in regulation.
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