Key Takeaways
- The exchange informed its European users that trading for USDT, EURT, PYUSD, TUSD, and UST will be phased out in the coming months
- On February 13, 2025, margin trading for USDT, EURT, PYUSD, TUSD, and UST will be set to “reduce-only” mode
Leading Crypto exchange Kraken has announced plans to remove support for several stablecoins, including Tether (USDT), across the European Economic Area (EEA) as the European Union’s Markets in Crypto-Assets Regulation (MiCA) takes full effect. The decision aligns with new regulatory requirements that impose stricter conditions on stablecoin issuers operating in the region.
The exchange informed its European users that trading for USDT, Tether’s euro-pegged stablecoin (EURT), PayPal USD (PYUSD), TrueUSD (TUSD), and TerraUSD (UST) will be phased out in the coming months. Kraken stated that while these changes are not immediately necessary, it is taking proactive steps to comply with MiCA before enforcement deadlines, allowing users sufficient time to adjust their holdings.
Kraken’s move follows a broader trend among exchanges adapting to MiCA’s regulatory framework. Crypto.com recently announced a similar decision, saying it would delist USDT and nine other tokens for European clients by January 31, 2025.
Coinbase has also removed non-compliant stablecoins from its European platform, while OKX took similar steps in March 2024. The new rules require that fiat-backed stablecoins be issued only by licensed electronic money institutions or credit institutions, which affects stablecoins like USDT that are not backed by an EU-regulated entity.
As per the official announcement, the delisting process will occur in stages. On February 13, 2025, margin trading for USDT, EURT, PYUSD, TUSD, and UST will be set to “reduce-only” mode, meaning users can close existing positions but cannot open new ones. By February 27, spot trading will shift to “sell-only,” preventing new purchases of the affected assets.
Kraken will stop generating new deposit addresses for these stablecoins, and any outstanding margin positions will be closed on March 17. On March 24, all spot trading for the delisted assets will be fully disabled, with open orders automatically cancelled. After March 31, any remaining balances will be converted into a MiCA-compliant stablecoin, though deposits to existing addresses will still be available for withdrawal.
Kraken’s regulatory strategy head, Marcus Hughes, had earlier talked about the firm’s commitment to evaluating all options regarding stablecoin offerings in Europe. In May 2024, Kraken’s global head of asset management, Mark Greenberg, stated, “Kraken continues to list USDT in Europe and we have no plans to delist at this time.” However, with increased regulatory scrutiny, Kraken has opted to act preemptively rather than risk compliance issues.
Tether, the issuer of USDT, has not announced plans to adjust to MiCA regulations, though it remains a dominant force in the stablecoin market. The company reported record profits of $13 billion in 2024, driven by U.S. Treasury reserves backing its stablecoin.
