Kraken, one of the world’s largest crypto exchanges, has announced that it will delist Tether (USDT) and four other stablecoins in the European Economic Area (EEA). Meanwhile, the delisting process will unfold in multiple stages, with automatic conversions of remaining holdings set for March 31, 2025.
Kraken’s Delisting Plan and Timeline
Recently Kraken emailed its users confirming that it will delist Tether (USDT) along with PayPal USD (PYUSD), Euro Tether (EURT), TrueUSD (TUSD), and TerraUSD (UST) stablecoins for users in the European Economic Area (EEA).
The delisting process will begin on February 13, 2025, with margin trading for these assets being placed in “reduce-only” mode for EEA clients, meaning no new positions can be opened.
Following this, spot trading will transition to a “sell-only” mode by February 27, preventing users from opening new positions with these stablecoins.
Meanwhile, by March 17, any open margin positions involving these stablecoins will be closed automatically. All spot trading will cease by March 24, with all remaining orders canceled.
Finally, after March 31, any remaining holdings in these stablecoins will be automatically converted to a compliant asset.
Why Is Kraken Taking This Step?
Kraken’s decision follows increasing pressure from European regulators under the MiCA framework, which introduces stricter rules for stablecoin issuers and exchanges.
The exchange operates in several European countries, including Germany, Spain, Italy, and France, and is adjusting its services to ensure compliance with these new regulations.
Thus users are encouraged to convert their affected holdings before the deadline to avoid automatic conversions.
Other Major Exchanges Delisting Too
Kraken is not the first major exchange to take such steps—Coinbase and Crypto.com have also announced plans to phase out support for USDT in Europe.
While Tether faces regulatory challenges in Europe, the company thrives globally. In 2024, Tether reported a record-breaking $13 billion in net profits.
Additionally, El Salvador recently welcomed Tether’s expansion, allowing the company to set up its headquarters in the country. Despite losing ground in the European market, Tether’s dominance in the crypto space remains strong.
