Kraken, a major cryptocurrency exchange, announced plans to remove several stablecoins from its European Economic Area (EEA) platform to comply with new EU regulations. The exchange will delist five stablecoins including Tether (USDT), PayPal USD (PYUSD), Euro Tether (EURT), TrueUSD (TUSD), and TerraUSD (UST) by March 31, 2024.
The move comes as the EU's Markets in Crypto-Assets (MiCA) Regulation takes full effect. Under MiCA rules, only licensed electronic money or credit institutions can issue fiat-backed stablecoins in the region.
The delisting process will occur in phases, beginning with restrictions on margin trading on February 13. Spot trading will cease on March 24, at which point open orders will be canceled and assets will no longer be exchangeable for cryptocurrency or fiat currency.
This decision marks a shift from Kraken's previous stance. In May 2023, the exchange's global head of asset management, Mark Greenberg, had stated they had no plans to delist USDT in Europe and were committed to offering the token under the new regulatory framework.
Other major cryptocurrency exchanges are making similar adjustments to their European operations. Crypto.com recently announced the removal of USDT and nine other tokens to align with MiCA requirements following their preliminary MiCA license approval. Users have until March 31 to convert affected assets before automatic conversion to MiCA-compliant alternatives.
Coinbase's European platform has also taken steps to adapt, having removed several crypto assets, including USDT, in December 2023 to meet EU regulatory standards.
These changes reflect the broader impact of MiCA regulations on cryptocurrency operations within the EU, as exchanges work to maintain compliance while serving their European user base.