- USDC’s market share on Binance surged 1,621% as MiCA reshapes stablecoin rules.
- Binance’s MiCA compliance may weaken USDT’s dominance in the European market.
- Nigeria’s $79.5B lawsuit adds legal pressure to Binance’s global operations.
The regulatory landscape for stablecoins in the European Economic Area (EEA) is undergoing a significant transformation. Binance, the world’s largest cryptocurrency exchange, is set to delist multiple stablecoins, including Tether (USDT), Dai (DAI), First Digital USD (FDUSD), and TrueUSD (TUSD), to comply with the Markets in Crypto-Assets (MiCA) regulation.
This decision, effective March 31, 2025, marks a pivotal moment for the stablecoin market, with USDC emerging as a strong contender. As Binance adjusts its stablecoin offerings, the question remains: Will USDC overtake Tether as the dominant stablecoin on the platform?
USDC’s Rapid Growth on Binance
According to CryptoQuant data, Over the past year, USDC’s market share on Binance has seen a meteoric rise. It surged from a modest 0.48% to an impressive 8.26%, reflecting a 1,621% increase. Regulatory changes, particularly MiCA, have played a crucial role in this shift.
USDC, being MiCA-compliant, is well-positioned to benefit from Binance’s regulatory realignments. The removal of USDT and other non-compliant stablecoins from Binance’s offerings for EEA users is expected to further accelerate USDC’s adoption.
Binance’s Strategy for MiCA Compliance
Binance has been proactive in aligning its operations with MiCA’s regulatory framework. Besides delisting non-compliant stablecoins, it continues to support their custody, deposits, and withdrawals.
Additionally, Binance Convert will allow users to exchange delisted stablecoins for MiCA-compliant alternatives or fiat currencies like the euro. This strategy ensures a smooth transition while maintaining market stability. Binance’s move also underscores its commitment to securing a MiCA license, solidifying its position in the European market.
Impact on the Global Stablecoin Landscape
The delisting of USDT on Binance for EEA users has broader implications. Tether has long dominated the stablecoin market, but its removal in a key regulatory region weakens its stronghold.
While USDT remains the preferred stablecoin globally, USDC’s increasing market share on Binance signals a shift in the industry. Moreover, the rise of other MiCA-compliant stablecoins like Eurite (EURI) could introduce further competition, diversifying the stablecoin ecosystem.
Binance Faces Legal Challenges in Nigeria
Meanwhile, Binance is dealing with a legal battle in Nigeria. The country has filed a lawsuit against the exchange, seeking $79.5 billion in damages for economic losses and an additional $2 billion in back taxes.
Nigerian authorities claim Binance’s operations have contributed to the country’s currency instability. The Federal Inland Revenue Service (FIRS) is demanding income taxes for 2022 and 2023, along with penalties and interest. Binance, which is not registered in Nigeria, has yet to respond to the allegations.
