Crypto exchange Kraken has announced plans to delist Tether’s USDT alongside four other tokens in Europe in strict adherence to the European Union’s Markets in Crypto-Assets Regulation (MiCA).
The delisting will take effect in about 30 European countries, including Spain, Sweden, Portugal, and Cyprus. The exchange also added that the delisting process will be in line with regulatory requirements, noting that it still offers great service to users in the EU.
Kraken to halt trading of five stablecoins by March 31
According to its statement, the exchange will halt support for five stablecoins in the European Economic Area (EEA). The tokens include PayPal USD, Tether EURt, TerraClassic USD, and the USDT. The decision is coming months after its Head of Asset Management Mark Greenberg mentioned that the company had no plans to delist USDT in Europe. The company mentions that it will still offer support for the token but under revised regulations.
The platform is expected to gradually delist the stablecoins, beginning by placing the assets in the reduce-only mode. This means that clients in the area need to reduce or close their margin positions before the deadline. The tokens will be moved to sell-only mode by February 27, meaning that traders can trade but cannot deposit the assets. The platform will close all remaining margin positions by March 17, before halting spot trading by March 24. All remaining holdings will be moved to supported stablecoin of corresponding value.
Crypto.com to delist USDT by the end of Q1 2025
Tether’s CTO Paolo Ardoino mentioned last year that the company might be giving up on Europe following the new rules. ‘As far as Europe is concerned, I don’t think MiCA can encourage the emergence of a welcoming regulatory framework. The message being sent is that Europe does not want crypto with regulation that largely limits access to it, especially for retail investors,’ he said.
crypto.com said it will delist 10 stablecoins, with Tether’s USDT in the mix. Users have up till the end of the first quarter of 2025 to move their tokens to assets compliant with the new regulations. The exchange has already discontinued support for the token last year.