Will Tether remain listed on Binance?

European crypto exchanges will still be allowed to offer certain services using Tether (USDT) in the future. The European Securities and Markets Authority (ESMA) confirmed this to Cointelegraph.

According to ESMA, receiving and holding stablecoins that do not comply with MiCA regulations do not constitute a regulatory violation. Only trading in such stablecoins would be illegal.

Tether is not MiCA-certified and therefore should in principle be delisted. Yet an ESMA spokesman clarified on March 4 that custody and transfer services do not in themselves constitute a "public offering" or "admission to trading" of non-compliant asset reference tokens or e-money tokens.

Trading with USDT must stop

So while exchanges would be allowed to continue offering certain services using Tether, ESMA says trading-related services should be discontinued. In addition, crypto service providers (CASPs) should only be allowed to sell and withdraw unlicensed stablecoins until March 31.

This again creates legal uncertainty among crypto exchanges. In fact, according to ESMA, transactions with these tokens are allowed even if they are heading toward an exchange. This raises questions about the practical application of the rules.

MiCA interpretation prompts debate

The ambiguity over MiCA's interpretation has also alarmed legal experts. Juan Ignacio Ibañez, secretary general of the MiCA Crypto Alliance, be on LinkedIn on a specific paragraph within the regulations. This states that crypto service providers who offered their services under current law before Dec. 30, 2024, may continue to do so until July 1, 2026 - or until they are licensed or denied under Section 63, whichever comes first.

In other words, in theory, crypto exchanges could simply continue to offer USDT until July 1, 2026. How this will be maintained in practice, however, remains to be seen.