Kraken to Delist Stablecoins in EEA Ahead of MiCA Regulation

Cryptocurrency exchange Kraken has announced its intention to delist several stablecoins, including Tether's USDT, from the European Economic Area (EEA) by March 31, 2025. This decision is in response to the upcoming Markets in Crypto-Assets (MiCA) regulation, which aims to provide a comprehensive legal framework for crypto-asset markets in the EEA.

The delisting process will occur in phases, with margin pairs involving the affected stablecoins set to "reduce-only" for EEA clients starting on February 13, 2025. By February 27, spot trading will be restricted to "sell-only" mode, and new deposit addresses will no longer be generated for these assets. On March 17, any outstanding margin positions involving these assets will be automatically closed. All spot trading for these stablecoins will halt for EEA clients on March 24, with all open orders being closed.

After March 31, 2025, all remaining EEA client holdings in these assets will be automatically converted to an equivalent stablecoin. The exchange noted that affected assets deposited to existing addresses after the deadline will only be available for withdrawal.

Kraken's decision comes amid increasing regulatory scrutiny of stablecoins in Europe. Several major exchanges have taken proactive steps to remain compliant and provide long-term services in the region. In addition to Kraken, Crypto.com has also announced its intention to delist USDT and nine other tokens in Europe as of January 31, 2025, in compliance with the new regulation.

Users are advised to convert affected tokens to MiCA-compliant assets by the end of the first quarter or they will be auto-converted to a compliant asset. This move by Kraken and other exchanges underscores the importance of regulatory compliance in the cryptocurrency industry and the need for exchanges to adapt to changing regulatory environments.