Binance Will Delist All USDT Trading Pairs in EU: MiCA Compliance Reshapes Crypto Markets
Binance, the world’s largest cryptocurrency exchange, has announced that it will delist all Tether (USDT) trading pairs for European Union users by June 30, 2025, in order to comply with the EU’s Markets in Crypto-Assets (MiCA)regulations. This dramatic shift, confirmed in a June 10 blog post, marks a pivotal moment for the stablecoin market and forces millions of EU-based traders to reconsider their strategies. Below is what you need to know about the delisting, its implications, and possible alternatives for affected users.
Binance’s USDT Delisting: Key Details
Scope of the Change
- All USDT pairs: Spot and margin trading pairs involving USDT – for example BTC/USDT, ETH/USDT, SOL/USDT – will be removed for EU-based customers.
- Effective Date: The final deadline is June 30, 2025, although some pairs may be phased out sooner.
- Exemptions: Conversions between USDT and fiat or other stablecoins (e.g., EUR/USDT) remain available for a limited period.
Reasoning Behind the Decision
MiCA’s regulations impose strict conditions on fiat-referenced stablecoins (EMTs), requiring issuers like Tether to be EU-authorized entities with sufficient liquidity reserves, transparency, and anti-manipulation protocols. Since USDT is mainly USD-backed and Tether does not hold an EU license, Binance must comply or risk facing fines up to €5 million or 3% of global turnover under MiCA.
MiCA’s Stablecoin Rules: A Primer
Requirements for EMT Issuers
- Authorization: Must be a licensed credit institution or e-money provider within the EU.
- Reserve Backing: Daily attestation of 1:1 reserves, with at least 60% held in cash or near-cash instruments.
- Transaction Caps: Daily transaction limits to mitigate systemic risks (USDT’s threshold is set at around $200M per day).
Impact on Non-Compliant Stablecoins
- Delisting: Exchanges must remove EMTs that lack EU authorization.
- Fines: Platforms failing to comply face escalating penalties beginning in July 2024.
Tether has called MiCA “innovation-stifling” and stated it will not seek EU authorization, instead focusing on non-EU regions like Latin America and Asia.
How Other Exchanges Are Reacting
- Kraken
Kraken started removing USDT pairs for EU-based users in Q1 2025, replacing them with EUR-backed stablecoins like MiCA-compliant EURC and EURL. - Bybit
Bybit exited the EU market in April 2025, citing “regulatory complexity,” but continues offering USDT pairs for non-EU customers. - Coinbase
Coinbase promotes its USDC stablecoin, which secured an EU e-money license in 2024. USDC/EUR pairs now command 73% of its stablecoin volume in the EU. - OKX
OKX restricted USDT trading for EU customers in May 2025, pivoting to USDC, DAI, and EUROe (a euro stablecoin fully compliant with MiCA).
Implications for EU Traders
Immediate Challenges
- Liquidity Loss: USDT constitutes around 68% of Binance’s spot volume in the EU. Transitioning to other stablecoins may increase slippage and reduce depth in order books.
- Tax Events: Swapping USDT to EUR or other stablecoins could be considered a taxable event in certain jurisdictions (e.g., Germany).
- Arbitrage Gaps: Price discrepancies between EU and global USDT markets might widen, complicating cross-market trades.
Alternatives to USDT
| Stablecoin | Issuer | Backing | MiCA Status | Key Exchanges |
| USDC | Circle | USD Reserves | Authorized (EMI) | Binance, Coinbase |
| EUROe | Membrane Finance | EUR Reserves | Fully Compliant | Kraken, Bitstamp |
| DAI | MakerDAO | Crypto Collateral | Unregulated* | OKX, Uniswap |
| EURL | Ledger & Société Gén. | EUR | Licensed | Binance, Crypto.com |
*DAI’s decentralized architecture excludes it from direct EMT classification, but it does face CASP obligations.
Binance’s Strategic Shift: Pivot to Compliance
- Promoting MiCA-Compliant Stablecoins
Binance is prioritizing USDC, EUROe, and EURL for EU customers, offering zero-fee USDT swaps until July 15. - Expanding EUR Liquidity
The exchange has added 22 new EUR trading pairs (e.g., BTC/EUR, ETH/EUR) to decrease reliance on stablecoins. - Institutional Partnerships
Binance Custody now supports BlackRock’s BUIDL (tokenized treasury fund) and Société Générale’s EURCV, aiming at institutional volumes. - Enhanced KYC/AML Measures
Tighter verification for EU users, including proof of residence, and a €1,000 monthly limit on anonymous deposits.
Risks and Criticisms
- Market Fragmentation
Removing USDT for EU-based customers splits global liquidity, potentially increasing volatility and hindering arbitrage. - Centralization
MiCA tends to favor stablecoins from major traditional finance entities (e.g., Circle, Société Générale), overshadowing decentralized stablecoin ventures. - User Backlash
Reddit and X (formerly Twitter) posts show frustration among EU day traders:
“Converting USDT to EUROe is just extra fees and delays.” — @CryptoMax_DE
“Why can’t the EU just follow global standards?” — @BlockchainJane - Tether’s Countermoves
Tether’s CEO Paolo Ardoino announced a MiCA-compliant Euro stablecoin (EUR₮) plan for 2026, too late to save 2025’s USDT pairs.
How Traders Can Adapt
- Diversify Stablecoin Holdings
Use a mix of USDC, EUROe, and DAI to reduce platform-specific dependency. - Leverage DEXs for USDT
Decentralized exchanges like Uniswap or PancakeSwap still offer USDT pairs, albeit with no direct fiat on/off-ramps. - Hedge with Futures
Trade ADA/EUR or SOL/EUR perpetual futures to offset spot liquidity issues. - Monitor Regulatory Updates
Keep an eye on announcements from ESMA, BaFin, and other EU regulators to respond swiftly to changes.
Conclusion: A New Era for the EU Crypto Market
Binance’s decision to delist USDT underscores MiCA’s far-reaching impact on Europe’s crypto ecosystem. While compliance might ensure a safer environment for retail investors, it also complicates life for traders used to USDT’s deep liquidity and broad acceptance. For crypto exchanges, the coming months and years will involve carefully balancing regulatory mandates with user-friendly solutions—a delicate act that will shape the European crypto market’s evolution well beyond 2025.