Stablecoins and MiCA: why USDT left European platforms, and what a Belgian can use

Daniel Platteau

In short: since MiCA came into force, a stablecoin can only be offered to the public or traded on a regulated platform in the European Union if its issuer is authorised in the EU. Circle (USDC, EURC) obtained that authorisation, Tether (USDT) did not: USDT therefore disappeared from regulated European platforms in 2025. Holding it remains legal. For a Belgian, the real question is not "USDT or not", but "what protection do I have if the issuer or the platform fails?".

A digital dollar… that isn't one

A stablecoin is a digital token designed to keep a stable value, most often 1 dollar or 1 euro. It serves as a medium of exchange in the crypto world: you sell a bitcoin for stablecoins to "take shelter" without going back through a bank, you pay, you send money abroad in a few minutes.

But a stablecoin is not a euro in a bank account. Its stability depends entirely on the issuer: on the quality of the reserves it holds, on its ability to pay out when everyone wants to exit at the same time, and on the authority that supervises it. The precedent of TerraUSD (UST), an algorithmic stablecoin that collapsed in May 2022, taking tens of billions of dollars with it, weighed heavily on how Europe wrote its rules.

MiCA: two families of stablecoins, strict rules

The European MiCA regulation (Markets in Crypto-Assets, Regulation (EU) 2023/1114) has applied to stablecoins since 30 June 2024, and to the rest of the crypto market since 30 December 2024. It does not speak of "stablecoins" but distinguishes two categories.

E-money tokens (EMT) are backed by a single official currency: USDC by the dollar, EURC by the euro. They are by far the most widely used. Asset-referenced tokens (ART) track a basket of currencies, commodities or other cryptos.

For e-money tokens, MiCA imposes rules close to those of traditional electronic money:

only a bank or an electronic money institution authorised in the EU can issue them;
the holder has a right of redemption at par, at any time and free of charge: 1 EURC must be exchangeable for 1 euro with the issuer;
the issuer may not pay interest to holders;
funds received must be protected, with at least 30% of the funds received deposited in separate accounts with banks (Article 54) and the rest invested in highly liquid, low-risk instruments, with stricter requirements for "significant" tokens;
tokens that become significant, by their size or use, come under the supervision of the European Banking Authority (EBA).

On top of this comes a limit aimed directly at dollar stablecoins: when a token denominated in a non-European currency is used as a means of payment within a single EU currency area beyond, on average, one million transactions and 200 million euros per day, its issuer must stop issuing it and present a plan to get back below these thresholds (Articles 23 and 58).

Why USDT left European platforms

Tether, the issuer of USDT, the largest stablecoin in the world, did not apply for MiCA authorisation. Its CEO, Paolo Ardoino, publicly criticised the European requirements, in particular the obligation to deposit a large share of reserves with banks, which he presents as a risk for the banking system itself [8].

As a result, USDT is not a compliant token, and a regulated platform can no longer offer it to the European public. On 17 January 2025, the European Securities and Markets Authority (ESMA) and the European Commission published guidance asking national authorities to ensure that crypto service providers comply "no later than the end of Q1 2025". The major platforms followed. Binance, for example, stopped spot trading of USDT for its customers in the European Economic Area on 31 March 2025, also removing other non-compliant stablecoins such as DAI, FDUSD and TUSD.

It is important to understand what this means, and what it does not. Platforms stopped offering USDT for purchase and exchange. However, according to ESMA's explanations reported at the time, custody and transfer of non-compliant tokens are not prohibited: a European customer could keep their USDT or withdraw it to their own wallet.

Is holding USDT illegal in Belgium?

No. MiCA regulates those who issue stablecoins and those who provide services (platforms, brokers, wallet custodians). It does not target the individual who holds tokens in their own wallet. A Belgian can therefore still hold USDT, receive it or send it from a personal wallet, or use it in decentralised applications.

But they do so without the safety net that MiCA built: no right of redemption at par guaranteed by European law, no European supervision of the reserves, and no recourse to a European regulator if the issuer defaults. It is a possible choice, but it must be a conscious one.

1 July 2026, the second turning point: the end of the transitional period

MiCA provided for a transitional period for crypto service providers already active before it came into force. In Belgium, the Financial Services and Markets Authority (FSMA) points out that it ended on 30 June 2026: since 1 July 2026, a provider without MiCA authorisation must stop its services in the EU.

An important point: at the time of this deadline, the FSMA stated that no provider had yet obtained an authorisation granted by it in Belgium. This does not mean no service is available to Belgians. Thanks to the European passport, a platform authorised in another Member State can serve the whole Union. This is the case, for example, of Bit2Me, authorised by the Spanish regulator (CNMV) in July 2025.

The right reflex before opening an account is therefore twofold: check that the platform appears in ESMA's MiCA register, and consult the FSMA's warnings, which regularly publishes lists of unauthorised platforms.

Which stablecoins to use as a Belgian?

Circle's stablecoins. Circle presents itself as the first major global issuer to have become compliant: its French entity obtained electronic money institution status from the ACPR (the French banking regulator) on 1 July 2024, for USDC (dollar) and EURC (euro). They are today the most widespread and most liquid compliant stablecoins.

Euro stablecoins issued by European institutions. Several banks and electronic money institutions have launched their own token, for example SG-Forge's EURCV (a Société Générale subsidiary) or Banking Circle's EURI. Their liquidity remains much lower than that of USDC or EURC, and their availability varies from one platform to another.

Euro or dollar? For a Belgian saver, a euro stablecoin avoids currency risk: 1,000 EURC remain 1,000 euros, whereas 1,000 USDC are worth more or fewer euros depending on the dollar's rate. The dollar remains dominant for trading and decentralised finance, but for saving or paying in Europe, the euro is often more logical.

What to check before using a stablecoin

Before converting a large sum into stablecoins, a few simple questions avoid unpleasant surprises:

Who issues it, and are they authorised in the EU? The white paper (mandatory information document) and ESMA's register will tell you.
What currency is it denominated in? Euro or dollar changes your exposure to the exchange rate.
Where is it held? On an authorised platform, you benefit from its custody obligations; in your own wallet, you alone are responsible for your keys.
What happens if the platform goes bankrupt? A stablecoin is not covered by the Belgian bank deposit guarantee (100,000 euros per person per bank): protection comes from the right of redemption with the issuer and the segregation of assets at the platform.
What are the tax consequences? Exchanging a crypto for a stablecoin may be a taxable transaction depending on your situation; Belgian rules are changing, and this point deserves specialist advice.

Was Europe right?

MiCA had a very concrete effect: it deprived Europe of the world's most liquid stablecoin on its regulated platforms, which many users experienced as a constraint. In exchange, the Union set clear rules on reserves, redemption and supervision, where information on some issuers' reserves long remained hard to verify. The United States has since adopted its own federal framework for stablecoins, which shows that the idea of regulating these tokens is no longer unique to Europe.

The debate remains open between those who see it as necessary protection for savers and for Europe's monetary sovereignty, and those who see it as a brake on innovation and liquidity. For the Belgian user, in any case, the choice has become clear: regulated and protected stablecoins on authorised platforms, or unregulated stablecoins at their own risk.

Key terms

Stablecoin: a crypto token designed to keep a stable value, usually 1 dollar or 1 euro.

EMT (e-money token): a stablecoin backed by a single official currency, governed by MiCA.

ART (asset-referenced token): a stablecoin backed by a basket of assets.

CASP: crypto-asset service provider (platform, broker, custodian), subject to authorisation under MiCA.

European passport: the right for a provider authorised in one Member State to operate throughout the EU.

Redemption at par: the right to exchange 1 token for exactly 1 unit of the reference currency.

Disclaimer

This article is for information only and constitutes neither investment advice nor tax advice. MiCA regulates issuers and platforms, but guarantees neither the value of a stablecoin nor the absence of liquidity, reserve or bankruptcy risk. Crypto-assets carry significant risks, including total loss. Always check a platform's status with the FSMA and ESMA before depositing funds.

Sources

[1] Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA), EUR-Lex, https://eur-lex.europa.eu/eli/reg/2023/1114/oj

[2] ESMA, "ESMA and the European Commission publish guidance on non-MiCA compliant ARTs and EMTs", 17 January 2025, https://www.esma.europa.eu/press-news/esma-news/esma-and-european-commission-publish-guidance-non-mica-compliant-arts-and-emts

[3] Cointelegraph, "Binance to halt spot USDT trading in the EEA for MiCA compliance", March 2025, https://cointelegraph.com/news/binance-halt-spot-usdt-trading-eea-mica-compliance

[4] Circle, "Circle is First Global Stablecoin Issuer to Comply with MiCA", 1 July 2024, https://www.circle.com/pressroom/circle-is-first-global-stablecoin-issuer-to-comply-with-mica-eus-landmark-crypto-law

[5] FSMA, "Crypto-asset service providers: end of the transitional period", https://www.fsma.be/en/news/crypto-assets-service-providers-end-transitional-period

[6] FSMA, "Check your provider", https://www.fsma.be/en/check-your-provider/search

[7] Finect, "Bit2Me se convierte en la primera plataforma cripto en obtener la licencia MiCA en España", July 2025, https://www.finect.com/usuario/avillanuevae/articulos/bit2me-se-convierte-en-la-primera-plataforma-cripto-en-obtener-la-licencia-mica-en-espana

[8] Cointelegraph, interview with Paolo Ardoino (Tether) on MiCA and systemic banking risk, https://cointelegraph.com/news/mica-regulation-systemic-risk-banking-system-tether-ceo