- Binance Delists Stablecoins – Binance will remove nine stablecoins in the EEA but will allow deposits and withdrawals after March 31.
- ESMA Confirms No Ban – MiCA does not explicitly prohibit custody or transfers of non-compliant stablecoins but advises limiting acquisitions.
- Regulatory Uncertainty Remains – ESMA urges CASPs to assess compliance as stablecoin rules leave gaps in staking, tokenized assets, and more.
The European Securities and Markets Authority has clarified that MiCA does not explicitly ban non-compliant stablecoin custody and transfers under its regulations. Binance recently announced plans to delist nine stablecoins, including Tether’s USDt, for users in the European Economic Area.
Binance to Delist Non-MiCA-Compliant Stablecoins
Despite the delisting, Binance will continue allowing deposits and withdrawals of these stablecoins even after March 31. ESMA confirmed that offering custody and transfer services for non-compliant stablecoins does not violate MiCA’s legal framework in Europe. However, it advised crypto asset service providers to restrict services that facilitate acquiring such assets. This clarification adds to ongoing uncertainty regarding MiCA’s impact on stablecoins and the broader cryptocurrency market.
Although Binance will eliminate the impacted tokens for trading, it announced that it will continue to support deposits and withdrawals of stablecoins that are not compliant with MiCA following the delisting on March 31.
ESMA Clarifies MiCA’s Stance on Stablecoin Custody and Transfers
As per ESMA, a principal regulatory entity monitoring MiCA adherence in Europe, offering custody and transfer services for stablecoins that do not comply with the new European cryptocurrency regulations is not against the law. Custody and transfer of USDt “not expressly forbidden”
“According to MiCA, custody and transfer services alone do not represent an ‘offering to the public’ or ‘request for trading’ of non-compliant asset-reference tokens or e-money tokens,” an ESMA spokesperson noted on March 4.
“The representative noted that these services are not specifically banned under Titles III and IV of MiCA.” Although the ESMA acknowledged that deposits and withdrawals of non-MiCA-compliant stablecoins are not prohibited, it stressed that European crypto asset services providers (CASPs) should “prioritize restricting services that facilitate the acquisition” of such assets, citing its guidance issued on Jan. 17, 2025.
Industry Uncertainty and Compliance Concerns Persist
In its January guidance, the ESMA confirmed that CASPs can offer “sell-only” services — or withdrawals — until March 31, enabling investors to liquidate their holdings. “Consequently, it is crucial for all CASPs to thoroughly evaluate if any of their services constitute a public offer under MiCA,” the agency stated.
ESMA’s affirmation that MiCA does not explicitly limit USDt custody and transfers — while simultaneously urging CASPs to suspend withdrawals post-March 31 — contributes to the existing uncertainty regarding MiCA compliance.
Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, has pointed out that the USDt delistings initiated by MiCA have been a topic of much discussion. The uncertainty surrounding the effects of MiCA on stablecoins that are not compliant with it is not the sole point of contention concerning Europe’s new cryptocurrency regulations.
Numerous industry analysts have earlier highlighted compliance issues resulting from MiCA’s failure to cover essential sectors, including tokenized real-world assets, cryptocurrency staking, and more.
“An ESMA spokesperson stated that ESMA and National Competent Authorities are consistently observing market developments to guarantee a smooth transition to the MiCA regime.”
