Kraken to Delist USDT, Four Stablecoins in EEA Amid MiCA Regulations

Kraken, one of the world’s largest cryptocurrency exchanges, has announced it will delist Tether (USDT) and four other stablecoins for users in the European Economic Area (EEA). The delisting process will take place in multiple stages, with automatic conversions of remaining holdings scheduled for March 31, 2025.

Here’s everything there is to know.

Which Stablecoins Are Affected?

In an email to users kraken kraken - support@kraken.com Centralised ExchangeDecentralised Exchange confirmed that it will remove support for Tether (USDT), PayPal USD (PYUSD), Euro Tether (EURT), TrueUSD (TUSD), and TerraUSD (UST) for EEA users.

Timeline for Delisting: What You Need to Know

• February 13, 2025: The delisting process will begin, with margin trading for these stablecoins switching to “reduce-only” mode for EEA clients. This means users can’t open new positions but can close existing ones.
• February 27, 2025: Spot trading for these assets will move to “sell-only” mode, meaning users won’t be able to open new positions with these stablecoins.
• March 17, 2025: Any open margin positions involving these stablecoins will be automatically closed.
• March 24, 2025: Spot trading will end, and any remaining orders will be canceled.
• March 31, 2025: Any remaining holdings in these stablecoins will be automatically converted to a compliant asset.

Why Is Kraken Doing This?

Kraken’s decision follows increasing pressure from European regulators under the new MiCA framework, which introduces stricter rules for stablecoin issuers and exchanges. Kraken, which operates in countries like Germany, Spain, Italy, and France, is adjusting its services to ensure compliance with these regulations.

Kraken is not alone in this move. Coinbase and Crypto.com have also announced plans to phase out support for Tether in Europe, highlighting a wider trend in the region.

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What Should Users Do?

Kraken encourages users to convert their affected holdings before the deadline to avoid automatic conversions after March 31, 2025.

Tether’s Global Success Continues

Even though Tether is facing regulatory challenges in Europe, the company continues to thrive globally. In 2024, Tether reported a record-breaking $13 billion in net profits. Additionally, El Salvador recently welcomed Tether’s expansion, allowing the company to set up its headquarters there.

Despite losing ground in Europe, Tether’s dominance in the global crypto space remains strong.