Kraken to remove Tether and four stablecoins by March 31

Kraken, a prominent cryptocurrency exchange, has announced plans to delist Tether's USDT (CRYPTO:USDT) and four other stablecoins in Europe.

This decision is part of the exchange's efforts to comply with the European Union's Markets in Crypto-Assets (MiCA) regulations.

The delisting process will unfold gradually, with full removal set for March 31, 2025.

Starting February 13, 2025, Kraken will implement a "reduce-only" mode for margin trading involving these assets, allowing users to close existing positions but preventing new trades.

By February 27, trading will shift to "sell-only" mode, meaning users will no longer be able to generate new deposit addresses for USDT or the other stablecoins: PayPal USD (CRYPTO:PYUSD), Euro Tether (CRYPTO:EURT), TrueUSD (CRYPTO:TUSD), and TerraClassicUSD (CRYPTO:USTC).

On March 24, all spot trading for these assets will cease, and any open orders will be canceled.

Kraken emphasised that this move is necessary to ensure compliance with MiCA and maintain a sustainable trading environment for its European clients.

The exchange operates across various countries within the European Economic Area (EEA), including Austria, Spain, and Sweden.

This announcement follows similar actions by other exchanges such as Crypto.com and Coinbase, which have also begun delisting non-compliant stablecoins.

Crypto.com plans to remove ten stablecoins by January 31, 2025, while Coinbase had already delisted eight tokens in December 2024. 

The European Securities and Markets Authority (ESMA) has urged exchanges to implement gradual delisting processes to avoid market disruptions.

“Sudden actions to align with MiCA, as clarified in the European Commission’s guidance, could potentially lead to disorderly crypto-assets markets.[...] To mitigate potential disruptions and ensure a smooth and orderly transition, National Competent Authorities should ensure compliance [...] no later than the end of Q1 2025,"  stated by ESMA.

At the time of reporting, the Tether (USDT) price was $1.00.