Binance removes stablecoins: how new MiCA regulations are changing the market

MiCA (Markets in Crypto-Assets) is a set of rules to control digital assets and their issuers in the European Union. Its primary purpose is to create a unified legal framework for cryptocurrency projects, ensure transparency of operations, protect investors, and minimize financial risks associated with the circulation of crypto-assets.

The introduction of these regulations led to the announcement of the impending delisting of nine stablecoins at once, which do not meet the new requirements, at the largest cryptocurrency exchange, Binance. As of March 31, users from the European Union (EU) will no longer be able to work with assets such as:

However, despite the restrictions, Binance offers customers several options to minimize the ban's impact.

Reasons for the removal of stablecoins

Regulatory pressure on the crypto market has been building for several years. The new MiCA law adopted by the EU in 2023 aims to create a unified legal framework for the operation of crypto assets and strengthen user protection.

According to the document, issuers of stablecoins operating in Europe must comply with strict requirements that include:

Asset reserving: issuers must maintain a full reserve equivalent to the issued volume of stablecoins held in safe and liquid assets such as cash or short-term government bonds.
Transparency — companies must publish regular reports on their reserves, verified by independent auditors, and disclose the mechanism for linking the token to the underlying asset.
Financial stability — stablecoins must be structured to minimize the risk of fluctuations in their value, and their issuers must have mechanisms to respond quickly to market crises and maintain stable liquidity.
Consumer protection: stablecoin issuers must allow users to easily exchange tokens for fiat money without significant fees or delays.
AML and KYC compliance — issuers must report to regulators to comply with anti-money laundering and user identification (AML/KYC) standards.
Licensing — to operate in Europe, issuers of stablecoins must register and obtain a license confirming their compliance with MiCA requirements.

Many stablecoins do not meet these criteria, which has forced exchanges to take action. Although Binance initially tried to find a compromise with regulators, the company ultimately decided to remove non-compliant assets from circulation in the EU.

How will the new MiCA rules affect Binance users?

As of March 31, 2025, Binance customers in the EU can no longer use listed stablecoins in trading and other products on the platform. However, the Binance Convert service will allow users to convert these assets into alternatives such as USDC or EURI. Customers can also continue storing the tokens in their Binance wallets, using them as long-term asset storage, without the ability to trade or participate in other products on the platform.

In addition, users can withdraw these stablecoins to external wallets, including hardware and software solutions, and transfer assets to other cryptocurrency platforms that are not subject to MiCA regulation. This will preserve access to these tokens, but users need to consider possible withdrawal and conversion fees, as well as restrictions that may be imposed by other platforms in the future.

A Binance spokesperson emphasized that users should take action in advance and exchange unregulated stablecoins for available alternatives or convert them into fiat currencies.

MiCA's impact on other exchanges

Binance is not the only exchange facing the effects of the new regulation. Coinbase, Kraken, Crypto․com, and other major platforms are also preparing to delist stablecoins that are not MiCA compliant. This confirms that the regulation significantly impacts the entire market, not just individual companies.

For some users, such measures may seem excessive, but European regulators insist on the need for strict control over stablecoins. They believe the new rules will help prevent financial risks and reduce the likelihood of fraud in the cryptocurrency market.

Which stablecoins will remain available?

Despite the ban, users still have options. Among the stablecoins that are MiCA compliant, stand out:

USD Coin (USDC) is a stablecoin pegged to the U.S. dollar at a 1:1 ratio, backed by reserves in the form of cash and short-term U.S. Treasury bonds. Centre, a consortium founded by Circle and Coinbase, launched USDC in 2018. USDC is widely used in decentralized finance (DeFi) and on various cryptocurrency exchanges.
Eurite (EURI) is a 1:1 pegged to the euro stablecoin issued by the Luxembourg-based payment bank Banking Circle. It is the first stablecoin to meet the requirements of the Markets in Cryptoassets Regulation (MiCA) in the European Economic Area (EEA) and is backed by an EU bank. It is designed to provide efficient payment solutions and integrate with existing payment systems.

The transition to these assets will allow traders and investors to continue working with cryptocurrencies without the risk of violating EU law.

How will the new rules change the cryptocurrency market?

The adoption of the MiCA and the subsequent delisting of stablecoins could lead to several significant consequences:

The rise in popularity of regulated stablecoins will give MiCA-compliant projects an advantage in the market, creating new opportunities for companies like Circle, a USDC issuer.
Reduced liquidity on exchanges. Restricting access to popular stablecoins could decrease trading activity in the EU, which in turn would affect overall market liquidity.
Capital reallocation. Investors will start looking for new ways to preserve the value of their assets. Significant capital flows into USDC, EURI, or traditional fiat currencies are possible.
Development of decentralized solutions. In a highly regulated environment, users may switch to decentralized exchanges (DEX), where authorities' control is minimal.

In this regard, the role of exchange aggregators, such as BestChange, which allows finding the most favorable rates for buying and selling cryptocurrencies in various crypto exchanges, is growing. BestChange may become a key tool for users seeking to avoid strict regulatory restrictions and maintain convenience when exchanging digital assets.