Kraken delists USDT and four other stablecoins in Europe due to MiCA regulations
Kraken delists USDT and four other stablecoins in Europe
Kraken, one of the world’s leading cryptocurrency exchanges, has announced plans to delist Tether (USDT) and four other stablecoins for users in the European Economic Area (EEA) due to regulatory changes under the MiCA framework. The exchange will implement this delisting in several phases, with final removal and conversion of remaining stablecoin balances set for March 31, 2025.
Which stablecoins will be delisted?
According to an email sent to users, Kraken will remove support for:
- Tether (USDT)
- PayPal USD (PYUSD)
- Euro Tether (EURT)
- TrueUSD (TUSD)
- TerraUSD (UST)
The exchange has advised customers to withdraw or convert these assets before the final delisting date to avoid automatic conversion to a compliant asset.
Delisting timeline: key dates
Kraken will carry out the stablecoin delisting in multiple stages, restricting trading before full removal:
- February 13, 2025 – Margin trading for the affected stablecoins will shift to “reduce-only” mode, preventing users from opening new positions.
- February 27, 2025 – Spot trading for these assets will switch to “sell-only” mode, allowing users to sell but not buy stablecoins.
- March 17, 2025 – Any open margin positions will be automatically closed.
- March 24, 2025 – Spot trading will end, and all remaining open orders will be canceled.
- March 31, 2025 – Any remaining stablecoin balances will be automatically converted to a compliant asset.
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Kraken has advised its EEA customers to withdraw or convert their affected holdings before March 31, 2025, to avoid automatic conversion into a different asset. Users should review their portfolios and take necessary action before the deadline to ensure smooth transitions.
The move comes as the Markets in Crypto-Assets (MiCA) regulatory framework takes effect across Europe, imposing stricter rules on stablecoin issuers and crypto exchanges operating in the region. Kraken, which is active in major European markets such as Germany, Spain, Italy, and France, is adjusting its operations to ensure full compliance with the new regulations.
Kraken is not the only exchange responding to MiCA restrictions. Coinbase and Crypto.com have also announced plans to phase out support for USDT and other stablecoins in the European market, reflecting a wider industry shift.
