Crypto money exchange Binance made an important decision that concerns its users in Europe. A total of nine stabilcoin’s spotwork pairs, including the USDT to adapt to the new European regulation, were mad. This step can be effective on both investors and the general balance of the sector.
Mica Compliance Process Targe Stabilcoins
Within the scope of the European Union’s new crypto asset regulations, stabilcoins, which meet only licensed and specified criteria, are allowed to be traded in the European market. Binance informed users to users at the beginning of March to adapt to this regulation and announced on March 31 that he would start the delist process. At the specified date, the USDT, as well as DAI, FDUSD, TUSD, USDP, AEUR, Ust, Ustc and Paxg were removed from spot operations.
Delist stabilcoins can still be stored by investors and can be used in futures. Binance also advised its users to switch to stabilcoins that are compatible with Mica such as USDC and EURI. Nominal couples such as euro continue to be presented among transaction alternatives.
Similar moves from other stock exchanges like Binance
Following Binance, Kraken decided to have a similar delist. Within the scope of Kraken’s arrangement for European users, spot operations of stabilcoins such as USDT, PYUSD, Eurt, TUSD and Ustc were stopped. Coinbase, on the other hand, was one of the stock exchanges that adapted to the process earlier, and the USDT was crazy before the Mica entered into force.
On the other hand, some stock exchanges still waited for the details of the rules of Mica and have not yet delisting the process pairs. This creates a difference between platforms for crypto investors in Europe. Although the statements from Esma say that it is legal to store these tokens, the prohibition of Spot is clearly applied.
Liquidity problems and investor uncertainty
The withdrawal of a stabilcoin with a high trading volume such as USDT from the European market may affect the liquidity in the region. This may increase costs, especially for high -volume investors, and may lead to delays in transactions. With the fall of liquidity, the opening of the difference between purchase and sale may directly affect the investor’s process performance.
Investors are looking for the new leader Stabilcoin that will fill the USDT’s gap. While alternatives compatible with Mica, such as USDC and EURI, will be among the most critical factors to determine user trust and market adaptation in this new order.
