In a significant move to comply with the EU's Markets in Crypto-Assets (MiCA) framework, Binance announced it will delist trading pairs for nine stablecoins, including Tether (USDT), by March 31, 2025.

This delisting will also extend to non-compliant margin trading pairs, with Binance converting any remaining balances to Circle's USD Coin (USDC) starting March 27.

MiCA, which became effective in December 2024, aims to create a unified regulatory framework for digital assets across the EU, prompting other trading platforms to follow suit in delisting non-compliant stablecoins.

Binance's decision to delay the delisting as long as possible contrasts with earlier compliance efforts by other exchanges, which had already removed non-compliant assets.

While the delisting will affect spot trading pairs, users will still be able to sell their non-compliant stablecoins through Binance Convert until the deadline.

To help users manage their positions and avoid forced liquidations, Binance has urged them to make necessary adjustments before the March 31 deadline.

In an effort to encourage compliance, Binance will introduce fee-free trading for selected USDC pairs and rewards for users transitioning to compliant currencies.

Other exchanges, such as Kraken and Coinbase, are also adjusting their operations to comply with MiCA regulations, highlighting the broader implications for Tether's operations.

Tether has faced challenges under MiCA, including a significant drop in its market cap after other exchanges delisted it, and has consistently declined to undergo an independent audit of its reserves.

The European Securities and Markets Authority (ESMA) is actively monitoring market developments to ensure a smooth transition to the MiCA regulatory framework.

Users are advised to update their holdings to stablecoins that comply with MiCA regulations, particularly USDC and EURI.

Industry observers have expressed concerns about MiCA's shortcomings, particularly its failure to address key sectors like tokenized real-world assets and cryptocurrency staking.