Cryptocurrency exchange Kraken announced plans to remove five stablecoins in the European Economic Area in compliance with the EU's MiCA regulation.
Changes at Kraken
To comply with MiCA regulations, Kraken will delist five stablecoins: PayPal USD, TrueUSD, Tether EURt, TerraClassic USD, and Tether USDT. This will impact clients in more than 30 European countries, including Austria, Cyprus, Czechia, Malta, Portugal, Spain, and Sweden.
Plans for Trading Halt
The exchange will begin phasing out support by placing stablecoins in 'reduce-only' mode on February 13, 2025. On February 27, stablecoins will shift to 'sell-only' mode, allowing token trading but prohibiting new deposit address generation. Any remaining margin positions will be closed on March 17, and spot trading will cease on March 24. By March 31, all remaining client holdings will be converted to corresponding market value stablecoins.
Other Market Changes
Crypto.com also plans to fully delist USDT in Europe by the end of Q1 2025. Tether CTO Paolo Ardoino highlighted MiCA's restrictive impact on stablecoins, stating, 'I don’t think MiCA encourages a welcoming regulatory framework in Europe,' expressing concerns over the future market.
Changes in MiCA regulation are significantly impacting the cryptocurrency market in Europe. Kraken and Crypto.com's decisions highlight new challenges for platforms and users in this region.
