15 Mar 2025

light mode

European Authorities Give a Thumbs-Up to USDT Custody

European Authorities Give a Thumbs-Up to USDT Custody

The European Securities and Markets Authority (ESMA) officially announced that users may hold and transfer the stablecoin USDT (Tether); however, significant restrictions on trading remain intact.

On this page

European regulators have offered clarity on certain MiCA guidelines impacting stablecoins like USDT, emphasizing the restrictive measures on trading these digital assets. This stance has led European platforms to remove the stablecoin from circulation entirely.

A clear reflection of this shift is Binance exchange‘s recent decision to halt USDT services for users in Europe. 

Custody of non-MiCA Compliant Stablecoins will continue and you will be able to withdraw or deposit non-MiCA Compliant Stablecoins at any time,

Binance representatives explained.

Not long ago, WhiteBIT—Europe’s leading cryptocurrency exchange—confirmed that the stablecoin USDT would no longer be available to European Economic Area users due to non-compliance with updated regulations.

The MiCA regulation (Markets in Crypto-Assets) was designed to standardize crypto rules across the EU, providing investor safety, preventing financial crimes, and enhancing transparency. But despite these good intentions, the regulation has created numerous hurdles for crypto businesses and their customers. Stablecoins have their own dedicated set of rules within MiCA, including a strict requirement that issuers hold some reserves in European banks.

Check this out: Crypto.com to Delist USDT and Several Other Tokens in Europe

Europe’s financial watchdog recently clarified key MiCA requirements concerning stablecoins, responding directly to growing industry confusion. ESMA’s move has come at a critical moment, as cryptocurrency companies grapple with a shifting regulatory landscape, pushing them to rethink how they handle stablecoin operations.

Adapting to MiCA: The Crypto Industry’s Delicate Dance with Regulation

Top exchanges like WhiteBIT and Binance are quickly adjusting their strategies, removing stablecoins that don’t meet MiCA’s standards. By taking these steps, businesses hope to stay compliant, sidestep hefty fines, and avoid harsher regulatory consequences.

It's clear: the EU is serious about MiCA compliance. Ignoring the rules isn’t an option—companies risk severe penalties, heightened regulatory attention, or losing the right to operate altogether.

A worthwhile read: Euro Stablecoins Eye Growth Under MiCA, Says JPMorgan

Industry analysts suggest that MiCA’s introduction, along with comparable regulatory measures, will push the cryptocurrency market into uncharted territory. This transition will test companies' adaptability, separating those equipped to manage rigorous compliance from those ill-prepared for stricter oversight. The coming months will demonstrate clearly who has the capacity to handle this evolving regulatory landscape.

Global Regulation on the Rise

Analysts point out that MiCA is merely one of many regulatory efforts attempting to cover all facets of crypto within Europe. Worldwide, government officials have become increasingly proactive in their attempts to regulate crypto—from stablecoins to entire market segments.

Read on: Trump’s Crypto Summits: Pragmatic Move or Regulatory Mess?

Now, the crypto industry's survival largely hinges on how quickly and smartly companies can either adapt to these sweeping changes or effectively address conflicting regulations. The current momentum is clear: authorities globally favor tighter oversight, increased transparency, and stricter compliance, pushing crypto companies to adjust their strategies rapidly or risk being left behind.

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
Pump․fun Meme Coin Launches Collapsed To 0.82%

Pump․fun Meme Coin Launches Collapsed To 0.82%

The Pump․fun platform has recorded an unprecedented drop in the weekly graduation rate of meme coins – for the first time, it fell below 1%, reaching 0.82%.

Anton Kryshtal
Senate Banking Committee Passes Stablecoin Bill: What the Genius Act Means 

Senate Banking Committee Passes Stablecoin Bill: What the Genius Act Means 

The Senate Banking Committee has endorsed the Senate Stablecoin Bill GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins), which seeks to set up a clear regulatory framework for payment of stablecoins.

Anahit Avetisyan
$100 Billion Gone! Bitcoin Speculators Trapped by the Market

$100 Billion Gone! Bitcoin Speculators Trapped by the Market

CryptoQuant reports that short-term Bitcoin investors lost over $100 billion while trying to cash in on BTC’s extreme volatility.

Anton Kryshtal
Crypto Scam Exposed: AML Bitcoin CEO Faces Conviction

Crypto Scam Exposed: AML Bitcoin CEO Faces Conviction

AML Bitcoin CEO Rowland Marcus Andrade was found guilty of wire fraud and money laundering by a federal jury in California after a five-week trial for misleading investors.

Anahit Avetisyan
How the Ethereum Foundation Is Shaping the Future of Crypto

How the Ethereum Foundation Is Shaping the Future of Crypto

For over a decade, the Ethereum Foundation has been the driving force behind Ethereum’s growth—from Vitalik Buterin’s white paper to a global financial and technological revolution.

Ivan Dikalenko
The Biggest Tweets in Crypto This Week: SEC vs Ripple Updates & More

The Biggest Tweets in Crypto This Week: SEC vs Ripple Updates & More

Summing up this week in Crypto Twitter/X: major announcements, updates, rumors, and interesting takes on the SEC vs Ripple case, Ethereum’s updates, the Trump family deal with Binance, and more.

Anahit Avetisyan
The Stablecoin Showdown: How USDC and Tether Compete for Dominance

The Stablecoin Showdown: How USDC and Tether Compete for Dominance

Two giants lead the stablecoin market—Tether (USDT) and USD Coin (USDC). But beneath their promise of stability lies a fierce competition.

Ivan Dikalenko
What Is Fiat Currency and Its Role in the Crypto World?

What Is Fiat Currency and Its Role in the Crypto World?

Discover fiat currency—a government-issued money without intrinsic value—and learn how it interacts with cryptocurrencies and influences digital financial systems worldwide.

The Coinomist
How to Short Crypto Safely and Effectively: Tips and Strategies

How to Short Crypto Safely and Effectively: Tips and Strategies

Learn advanced strategies for shorting crypto safely. This guide covers key tips, risk management techniques, and various methods like direct shorting, futures, margin trading, and options.

The Coinomist
Risk Reversal: A Deep Dive into Best Practices

Risk Reversal: A Deep Dive into Best Practices

Explore risk reversal strategies and learn best practices for managing risks in trading and business. Understand how to balance risk and reward to optimize outcomes.

The Coinomist
World Bridge Currency: Is XRP the Future of World Bridge Currencies?

World Bridge Currency: Is XRP the Future of World Bridge Currencies?

Explore XRP as a potential world bridge currency. Learn how its speed, low fees, and scalability could transform global cross-border transactions and reshape financial systems.

The Coinomist
What Is TRC20? Exploring the Tron Network Standard

What Is TRC20? Exploring the Tron Network Standard

Discover TRC20, the token standard on the TRON blockchain. Learn how TRC20 tokens work, their advantages like low fees and speed, and their use cases in DeFi, gaming, and more.

The Coinomist
What Is a Bullish Market? How to Spot One Before It Happens

What Is a Bullish Market? How to Spot One Before It Happens

Learn what a bullish market is, its key characteristics, and how to identify early signs before a full bull market develops. Gain insights into market trends and strategies.

The Coinomist
Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

It takes just one post from Trump to stir the crypto market. Recently, he announced on Truth Social that the evaluation of a strategic crypto reserve is in progress as part of his broader Trump crypto policy.

Anahit Avetisyan
Trump’s Crypto Tax Plan: Smart Policy or Risky Gamble?

Trump’s Crypto Tax Plan: Smart Policy or Risky Gamble?

There’s been a lot of talk about possible changes to crypto tax policies in the U.S. One of the more controversial ideas floating around is “Trump no tax on crypto.” As Trump adopts a more crypto-friendly stance, major rumors have surfaced that he’s considering a 0% tax on crypto gains.

Anahit Avetisyan
MORE
Wealth, Influence, and Bitcoin: The Market Moves of the Ultra-Rich

Wealth, Influence, and Bitcoin: The Market Moves of the Ultra-Rich

Billionaires have a significant impact on digital asset prices, often driving instability and engaging in crypto market manipulation. This view is echoed by American entrepreneur David Wolfe.

The Coinomist
The New Crypto Sports Economy: Sponsorships, Fan Tokens, and NFTs 

The New Crypto Sports Economy: Sponsorships, Fan Tokens, and NFTs 

Crypto companies are shaking up crypto sport, partnering with clubs and stadiums for high-profile sponsorships. This means big bucks for athletes, thanks to advertising and fan tokens.

The Coinomist
MORE