Kraken, a prominent crypto exchange, has announced plans to fully delist five stablecoins, including Tether’s USDT, across the European Economic Area (EEA). This is because the European crypto landscape is undergoing a significant transformation. Major trading platforms are trying to comply with the Markets in Crypto-Assets Regulation (MiCA) to retain their relevance in the EU region. This decision comes as part of broader regulatory changes enforced by the European Securities and Markets Authority (ESMA). The new rule requires crypto asset service providers (CASPs) to phase out non-compliant stablecoins. Kraken’s move reflects its commitment to regulatory compliance while maintaining its service for European users. Kraken’s Phased Delisting Strategy To ensure a smooth transition, Kraken will remove support for Tether USDt (USDT), PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST) in Europe. The delisting will take place in multiple stages. On February 13, margin trading pairs for these non-compliant assets will shift to “reduce-only” mode for EEA clients. This means traders will only be able to close or reduce existing positions but will not be able to open new ones. By February 27, all affected tokens will enter “sell-only” mode, preventing EEA users from depositing them into their Kraken accounts. Notably, traders will still be able to sell or trade them. On March 24, Kraken will suspend all spot trading for these stablecoins, closing open orders and 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. After this date, any stablecoins deposited into Kraken addresses will only be available for withdrawal, not trading. Kraken assures users that the delisting is strictly for its EEA clients, spanning 30 countries, including Spain, Sweden, Austria, Portugal, and Malta. MiCA’s Ripple Effect: Crypto.com Follows Suit 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 Fires Back at MiCA’s Impact 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. In contrast to this sentiment, MiCA-compliant stablecoins have dominated the European markets as they gain massive traction in the stablecoin market. The post Kraken Bows to MiCA, Drops Five Stablecoins including USDT appeared first on TheCoinrise.com .
