Major bitcoin exchange Kraken has said it will phase out five stablecoins—including Tether (USDT)—for consumers in the European Economic Area (EEA.). This reaction to the Markets in Crypto-Assets Regulation (MiCA) of the European Union, which imposes more severe rules for issuers of stablecoins.
Kraken is using a methodical elimination approach to help to reduce disturbance. Marginal trading for these stablecoins will turn to “reduce-only” mode on February 13, 2025, letting users close positions but not open fresh ones. The assets will be put in “sell-only” mode by February 27, therefore stopping more purchases. On March 17 any open margin positions will be forcefully terminated; on March 24 spot trading will be stopped completely, therefore cancelling any existing orders. At last, on March 31, 2025, any last balances in these stablecoins will be automatically transformed into MiCA-compliant stablecoins.
The stablecoins planned for disposal include Tether (USDT), PayPal USD (PYUSD), Euro Tether (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST). According to Kraken, these developments will solely impact EEA users—that is, those from thirty countries including Germany, Spain, France, and Sweden. Any deposits made in these stablecoins after the last date will just be qualified for withdrawal.
Not only is Kraken changing with the new rules another exchange. Other main platforms have also changed in such manner. While Coinbase kicked USDT and other non-compliant assets from its European platform in December 2024, Crypto.com has already delisted USDT and nine other stablecoins.
