Kraken Delists Five Stablecoins in Europe Amid MiCA Compliance
Crypto exchange Kraken has announced its decision to delist five stablecoins, including Tether's USDT, across the European Economic Area (EEA) in response to the Markets in Crypto-Assets Regulation (MiCA). This move is part of a broader regulatory shift in the European crypto landscape, with major trading platforms aiming to comply with MiCA to maintain their relevance in the EU region.
Kraken's phased delisting strategy involves removing support for Tether USDt (USDT), PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST) in Europe. The process will occur in multiple stages, beginning with margin trading pairs shifting to "reduce-only" mode for EEA clients on February 13. By February 27, all affected tokens will enter "sell-only" mode, preventing EEA users from depositing them into their Kraken accounts. On March 24, Kraken will suspend all spot trading for these stablecoins, requiring users to convert their holdings into other cryptocurrencies or fiat before the deadline. Finally, on March 31, any remaining balances in the affected assets will be automatically converted into a MiCA-compliant stablecoin.
Kraken's decision reflects its commitment to regulatory compliance while maintaining its service for European users. The exchange assures users that the delisting is strictly for its EEA clients, spanning 30 countries, including Spain, Sweden, Austria, Portugal, and Malta.
Kraken is not alone in its compliance efforts. Crypto.com, another major exchange, has recently removed USDT and nine other stablecoins. The trading platform revealed that its users will have until Q1 2025 to convert their affected holdings to MiCA-compliant assets. If they fail to do so, their balances will be automatically converted into a compliant stablecoin or equivalent asset.
Tether has voiced strong opposition to these changes, arguing that the rushed implementation of MiCA creates uncertainty in the market. A Tether spokesperson warned that such moves could increase risks for EU consumers, as many tokens, not just USDT, are affected. With MiCA still in its early stages, Tether believes the regulatory rollout could lead to market instability rather than clarity.
