USDT and 4 Other Stablecoins Delisted by Kraken Before MiCA

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Kraken pulled out USDT and four other stablecoins in Europe to comply with EU MiCA laws.

USDT will completely disappear on March 31, 2025. Crypto.com and Coinbase both took similar steps. Kraken announced a 128% year-over-year revenue gain to $1.5 billion in 2024 and restarted US staking services after resolving with the SEC. Tether announced a record $13 billion in earnings due to its growing US Treasury holdings, while its market dominance fell.

One of the world’s largest crypto exchanges, Kraken, wants to delist five stablecoins, including USDT. The EU Markets in Crypto-Assets Regulation requires delisting stablecoins. Major exchanges like Crypto.com and Coinbase took similar moves.

The exchange will end European USDT support on March 31, 2025. Along with USDT, Kraken will phase down PYUSD, EURT, TUSD, and UST. The firm argued that the move is important to comply with MiCA and continue serving European customers.

Kraken followed the European Securities and Markets Authority (ESMA) delisting procedure to avoid crypto market disruptions. Kraken will switch all stablecoin margin trading pairs to “reduce-only” on Feb. 13. This means European users may only close existing positions.

By Feb. 27, these assets will be in “sell-only” status, barring new token deposits but permitting sales. Finally, on March 24, Kraken will suspend spot trading for delisted assets, terminating all existing orders and swapping holdings into other assets.

By March 31, 2025, EEA clients holding impacted stablecoins will have their balances automatically changed into a compliant stablecoin. Depositing these assets to Kraken addresses will only allow withdrawals. The modifications will affect customers in 30 EEA countries, including Austria, Cyprus, Czechia, Malta, Portugal, Spain, and Sweden.

European regulators want all stablecoins to conform with MiCA requirements by the first quarter of 2025, prompting Kraken’s decision. ESMA has advised crypto asset service providers to avoid sudden delistings that might disrupt markets. The agency encouraged exchanges to start with “sell-only” restrictions before discontinuing trade to minimize disruptions.

Many large platforms are adapting to MiCA’s new rules, including Kraken. Recent announcements include Crypto.com delisting USDT and nine other stablecoins. The swap required complete removal by Jan. 31, 2025. The exchange claimed that consumers who do not convert their holdings before the deadline would have them automatically changed to a MiCA-compliant stablecoin or another asset of comparable market value. In December 2024, Coinbase, another large US exchange, prematurely delisted USDT and other noncompliant stablecoins.

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