Kraken Bitcoin

Kraken to Delist Tether (USDT) and Four Stablecoins in EEA: What You Need to Know

Kraken, one of the world’s largest cryptocurrency exchanges, has announced plans to delist Tether (USDT) and four other stablecoins from its platform for users in the European Economic Area (EEA). This move comes as part of Kraken’s compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation, which aims to strengthen oversight of stablecoins and other crypto assets.

Kraken’s Delisting Timeline

The delisting process will unfold over multiple stages, with important dates to note for affected users. On February 13, 2025, Kraken will place margin trading for Tether, PayPal USD (PYUSD), Euro Tether (EURT), TrueUSD (TUSD), and TerraUSD (UST) in a “reduce-only” mode for EEA clients. This means no new margin positions can be opened with these stablecoins.

By February 27, spot trading will enter a “sell-only” mode, preventing users from making new trades with the delisted assets. On March 17, Kraken will close all open margin positions involving these stablecoins, and by March 24, all spot trading will cease with any remaining orders canceled. Finally, after March 31, any remaining holdings in the affected stablecoins will be automatically converted into a compliant asset.

Why Is Kraken Delisting Stablecoins?

Kraken’s decision stems from increasing regulatory pressure in Europe, particularly from the MiCA framework, which enforces stricter rules for stablecoin issuers and exchanges. As Kraken operates in multiple European countries, including Germany, Spain, Italy, and France, the exchange must adapt its services to comply with these new regulatory requirements. Users are encouraged to convert their holdings before the deadline to avoid the automatic conversion of their assets.

Also Read: Kraken Loses ‘Major Questions’ Defense in SEC Lawsuit but Keeps Key Legal Arguments Alive

Impact on the Stablecoin Market

Kraken isn’t the only exchange taking action in Europe. Coinbase and Crypto.com have also announced plans to phase out support for USDT in the region. While these regulatory changes challenge Tether in Europe, the stablecoin continues to thrive globally, with Tether reporting a record $13 billion in net profits in 2024. Additionally, El Salvador recently welcomed Tether’s expansion, solidifying its global dominance despite European setbacks.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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