NEW: FREE Web3 Resume Cheat Sheet DOWNLOAD NOW

Kraken will delist USDT and four other stablecoins in Q1 2025 as MiCA sweeps through Europe

In this post:

  • Kraken will remove support for five stablecoins in compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
  • By March 31, 2025, the platform will fully delist Tether’s USDT and other affected assets.
  • Crypto.com has already started its delisting process, which will continue until the end of Q1 2025.

The Kraken crypto exchange will delist five stablecoins, including Tether’s USDT, in the European Economic Area to adhere to the European Union’s Markets in Crypto-Assets Regulation (MiCA). 

The delisting will affect European clients in over 30 countries, including Austria, Cyprus, Czechia, Malta, Portugal, Spain, and Sweden.

The exchange also maintains that the delisting process will ensure it meets crypto assets regulatory requirements and offers an “exceptional trading experience” for its European clients.

Kraken will halt spot trading of five stablecoins by March 31, 2025

Kraken will discontinue support for the following tokens in the European Economic Area (EEA): PayPal USD, TrueUSD, Tether EURt, TerraClassic USD, and Tether USDT. 

This comes months after Mark Greenberg, the Global Head of Asset Management, insisted that the exchange had no plans to delist USDT in Europe, saying it would look for ways to offer the token under the new regulations.

The crypto platform will now gradually remove support for the five stablecoins, starting with placing the assets in a “reduce-only” mode on February 13. That means EEA clients will have to scale down or completely close out their existing margin positions. 

Then, on February 27, the stablecoins will move to the “sell-only” mode. Here, the platform will still allow for token trading; however, users cannot generate deposit addresses. 

See also  Plasma raises $24M to launch zero-fee blockchain for Tether in Q2

Additionally, the platform said it would close any remaining margin positions on March 17. Then, it will stop spot trading for the affected assets on March 24 at 7 a.m. EST, formally closing all open orders into other coins or fiat currencies.

By March 31, all outstanding client holdings will be converted to a stablecoin of corresponding market value.

Crypto.com will also fully delist Tether’s USDT by the end of Q1 2025

In April 2024, Tether’s CTO Paolo Ardoino hinted that it might be giving up on its crypto market in Europe following the regulation change, pointing out that Europe has placed very restrictive measures on stablecoins.

He said:

As far as Europe is concerned, I don’t think MiCA can encourage the emergence of a welcoming regulatory framework. Clearly, the message being sent is that Europe does not want crypto with regulation that largely limits access to it, especially for retail investors.

Paolo Ardoino

Crypto.com is also delisting ten stablecoins, including Tether’s USDT. Similarly, the platform is giving its customers until the end of the first quarter of 2025 to convert their affected assets into MiCA-compliant tokens.

OKX had already discontinued support for USDT in Europe last year.

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

See also  Crypto's Tether buys stake in soccer club Juventus

Share link:

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Editor's choice

Loading Editor's Choice articles...
Subscribe to CryptoPolitan