.svg)
Binance confirms USDT delisting in Europe, Tether hires a new CFO to deliver the company’s first ever audit, and Circle’s USDC wins a landmark regulatory approval in Japan.
As a key deadline for the implementation of the Markets in Crypto-Assets (MiCA) regulation approaches, Binance has become the latest exchange to commit to delisting Tether’s USDT.
This week, Binance issued a statement confirming that it will delist all non-MiCA-compliant stablecoins for users in the European Economic Area (EEA) by March 31, 2025.
In addition to USDT, other stablecoins such as First Digital US Dollar (FDUSD), True US Dollar (TUSD) and Paxos Gold (PAXG) will also be delisted.
The move aligns with the latest guidance from the European Securities and Markets Authority (ESMA), which states that authorised crypto-asset service providers (CASPs) may not offer non-MiCA-compliant stablecoins after March 31, 2025.
On the Binance exchange, any EEA users who hold these stablecoins beyond the deadline will be forced to withdraw them, sell them for fiat currency, or convert them into MiCA-compliant alternatives.
Binance is currently recommending that users convert their stablecoins into Circle’s USDC or Banking Circle’s EURI, and is offering fee discounts, prize draws and generous interest rates on these assets to incentivise them to do so.
However, it should be noted that Binance is still not authorised in any EEA jurisdiction as a crypto-asset service provider (CASP) under MiCA.
The company is reportedly working towards towards obtaining a MiCA licence in Latvia, which would allow it to passport to the rest of the EEA. However, when contacted by Vixio, Binance neither confirmed nor denied these reports.
Several of Binance’s rivals, including OKX, Bitpanda and Crypto.com, obtained MiCA authorisations in January from authorities in Malta.
Both Crypto.com and OKX have already delisted Tether, while Bitpanda is yet to confirm its delisting plans.
Tether promises ‘historic’ audit
On the same day that Binance announced its delisting of USDT, Tether announced several new transparency initiatives, including a “historic step” towards its first ever financial audit.
The stablecoin issuer said its new focus on transparency will be spearheaded by a new hire, Simon McWilliams, who has taken over as CFO from Tether co-founder Giancarlo Devasini.
McWilliams joins Tether from UAE-based fintech Wizz Financial, where he previously served as a senior business advisor.
“With the appointment of McWilliams, Tether is making a firm commitment to completing a full audit — a crucial step in raising industry standards and strengthening regulatory engagement,” Tether said in a statement.
“As policymakers and institutions assess the evolving role of stablecoins, Tether is positioning itself as a trusted partner in strengthening the global reach of the US dollar.”
Devasini will transition to chair of the company, where he will focus on “macroeconomic strategy” and Tether’s role in “supporting the US financial system”.
As covered by Vixio, Tether has effectively opted out of the EEA market due to MiCA constraints, but it hopes to play a more significant role in the US market in future.
In Europe, Tether is unable to comply with MiCA’s reserve asset rules, which would require the company to hold at least 60 percent of its reserves in bank deposits.
In the US, meanwhile, Tether CEO Paolo Ardoino has said he is working closely with two Republican lawmakers on a potential stablecoin regulation.
Ardoino’s role in the legislative process may come as a surprise, given that only six months earlier, Tether was reported to be under criminal investigation in the US for anti-money laundering (AML) and sanctions violations.
Stablecoins continue to lead in illicit crypto volume
Although news of a potential criminal investigation has gone quiet, Tether continues to face criticism for illicit use of its stablecoin.
Both the Chainalysis and TRM Labs 2025 Crypto Crime Reports identified stablecoins as the most commonly used crypto-assets in illicit transactions, with USDT making up the largest component.
According to Chainalysis, stablecoins were used in 63 percent of illicit transactions in 2024, out of a total illicit volume of $40bn.
Since 2020, the majority of illicit volume has shifted from Bitcoin to stablecoins. And since 2022, stablecoins’ share of this illicit volume has remained steady at around two-thirds, while Bitcoin’s has remained steady at around 15 percent.
First US dollar stablecoin approved in Japan
Circle's USDC has become the first US dollar stablecoin to be approved for use in Japan, following a regulatory approval granted to a local crypto and payments firm.
This week, SBI VC Trade, a subsidiary of financial conglomerate SBI Holdings, announced that it has secured regulatory approval as an Electronic Payment Instruments Business Operator.
The approval, granted by Japan’s Financial Services Agency (FSA), is the first of its kind and follows the introduction of the country’s new stablecoin framework in June 2023.
Firms that intend to distribute stablecoins in Japan must register under the Fund Settlement Act and the Banking Act.
The approval means that SBI VC Trade is now licensed as an electronic payment instruments business, a cryptocurrency exchange business, and a Type 1 financial instruments business.
It is the only firm in Japan to hold all three licences, and it hopes that the trio of approvals will help to position it as a leading distributor of regulated stablecoins.
The company plans to introduce a beta version of USDC for a limited number of users on March 12, 2025, followed by a full-scale launch as soon as possible.
