Cryptocurrency exchange Kraken is taking steps to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA) by delisting five stablecoins, including Tether’s USDT. The move is part of a phased approach aimed at minimizing disruptions in the market while ensuring adherence to regulatory standards.
Kraken has announced that it will fully delist USDT by March 31, 2025, to meet MiCA’s compliance requirements. Alongside USDT, the exchange will gradually remove support for PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST) for its European customers.
“These changes ultimately ensure Kraken remains compliant and is able to provide its exceptional trading experience to European clients for the long term,” the company stated.
The delisting process will take place in several stages to ensure a smooth transition. Beginning February 13, Kraken will place margin pairs involving these assets into “reduce-only” mode for users in the European Economic Area (EEA), limiting trading activity to closing existing positions. By February 27, the exchange will switch to “sell-only” mode, preventing users from generating new deposit addresses while still allowing asset sales. On March 24, spot trading for the affected tokens will be halted, closing open orders and enabling final conversions into other assets or fiat currency.
Any holdings of these stablecoins remaining in EEA client accounts after March 31, 2025, will be automatically converted into an equivalent MiCA-compliant stablecoin. Kraken has also clarified that any deposits of these delisted assets made to existing addresses after the deadlines will only be available for withdrawal.
The changes will exclusively impact customers in the EEA, a jurisdiction covering 30 countries, including Austria, Cyprus, Czechia, Malta, Portugal, Spain, and Sweden.
Kraken’s decision aligns with regulatory expectations set by the European Securities and Markets Authority (ESMA), which has called for a structured approach to delisting noncompliant stablecoins. The agency emphasized that abrupt delistings could cause significant market disruptions and encouraged service providers to follow a structured transition, starting with a “sell-only” phase.
Other major exchanges are also taking similar steps. Crypto.com has confirmed that it will delist USDT and nine other stablecoins by January 31, 2025, giving users until the end of Q1 2025 to convert their holdings into MiCA-compliant alternatives. If users do not act within this timeframe, their assets will be automatically converted into an eligible stablecoin or equivalent market-value asset.
Kraken and Crypto.com are among the first major crypto service providers in the EU to announce delistings in response to MiCA regulations. Coinbase previously delisted eight stablecoins, including USDT, in December 2024. As regulatory oversight continues to tighten, more exchanges are expected to follow suit, reshaping the European stablecoin market in the coming months.