Crypto exchange Kraken has announced the delisting of five stablecoins, including USDT, in response to the EU’s MiCA regulation.
Reasons for Kraken's Stablecoin Delisting
The move aims to ensure compliance with the new regulatory framework as the EU tightens oversight on digital assets.
Stages of Token Removal
The delisting process will occur in several stages, starting on February 13, when margin pairs involving these assets will enter 'reduce-only' mode for EEA clients. By February 27, these tokens will move to 'sell-only' mode, and spot trading will cease on March 24, closing all open orders and exchanges into other assets.
Impact on Users and Next Steps
The delisting will impact Kraken users in 30 EEA countries. Any remaining holdings of these stablecoins by March 31, 2025, will be converted to MiCA-compliant stablecoins.
Kraken’s decision aligns with the current trend of increasing regulation in the crypto industry, highlighting the necessity for exchanges to adapt their business models to meet new legal standards.
