Kraken is preparing to remove Tether (USDT) along with 4 additional stablecoins from the EEA region. The exchange plans to phase them out gradually, with the last cutoff and changeover set to take place on March 31, 2025.
According to the announcement, the exchange is doing this to comply with Europe’s crypto regulations under the MiCA framework which has set new stricter rules on stablecoins.
The stablecoins being targeted include Tether (USDT) PayPal USD (PYUSD), Euro Tether (EURT), TrueUSD (TUSD) and TerraClassicUSD (UST). Kraken is giving users time to swap their stablecoins before the final cut-off. Any remaining balances after March 31 will be automatically converted into a different stablecoin that follows the rules.
Kraken has a made schedule for winding down these services. On February 13, 2025, margin trading in these stablecoins will enter “reduce-only” mode, and users will not be able to make new positions but can close them.
By February 27, trading will enter “sell-only” mode, and users will no longer be able to purchase these stablecoins. All margin positions will be forced out on March 17, with spot trading and any active orders fully cancelled by March 24.
According to Kraken, these changes only impact people located in the EEA which comprises Germany, Spain, France, Sweden, and 26 other countries.
“Any impacted assets for EEA clients deposited to existing addresses after the above deadlines will only be able to be withdrawn.,” the company said.
Meanwhile, Other exchanges have similar changes in store. For instance, Crypto.com will no longer offer USDT and nine other stablecoins effective today.
Coinbase already delisted USDT and other stablecoins from its European platform last December.
[cryptotimes]