The cryptocurrency exchange Kraken has announced plans to delist Tether’s USDT and four other stablecoins in Europe. This is in compliance with the European Union’s Markets in Crypto-Assets Regulation (MiCA), following a phased approach to minimize market disruptions.
Kraken plans to completely delist Tether’s USDT by March 31, while gradually phasing out support for PayPal USD, Tether EURt (EURT), TrueUSD, and TerraClassicUSD (UST) across its European platform.
“These changes ultimately ensure Kraken remains compliant and is able to provide its exceptional trading experience to European clients for the long term,” the company stated in its official announcement.
To comply with the European Securities and Markets Authority (ESMA) guidelines, Kraken will implement a phased removal of USDT support, ensuring a seamless and orderly delisting process.
Kraken will begin this process on February 13 by placing margin pairs involving the affected assets into “reduce-only” mode for clients in the European Economic Area (EEA). This will allow users to only reduce or close existing margin positions.
By February 27, the affected tokens will enter “sell-only” mode, disabling deposit addresses but still allowing trading. Finally, on March 24, Kraken will halt all spot trading of these assets, closing open orders and converting them into other coins or fiat.
“All remaining EEA client holdings for these assets as of March 31, 2025, will be converted to an equivalent stablecoin,” Kraken stated. “Any impacted assets for EEA clients deposited to existing addresses after the above deadlines will only be able to be withdrawn.”
In addition to Kraken, several other cryptocurrency exchanges are also delisting USDT. Crypto.com, for instance, announced it will remove USDT and nine other stablecoins from its platform, starting January 31.
USDT Delisted Despite Financial Growth?
Kraken’s decision to delist Tether’s USDT comes as the stablecoin recently shared its financial update for Q4 2024, revealing impressive growth. With a $13.7 billion profit for the year and a significant increase in excess reserves, Tether remains a strong player in the market.
Tether CEO Paolo Ardoino recently announced the company’s Q4 2024 financial update in a post on X. According to Ardoino, Tether Group’s proprietary equity has surpassed $20 billion, with Tether Investments holding approximately $12.5 billion in assets.
The remainder of Tether’s reserves are primarily in excess stablecoin reserves. Additionally, Tether reached a significant milestone in 2024, with USDt now used by over 400 million people worldwide, with the majority of users located in emerging markets and developing countries.
Despite these strong financials, USDT is facing scrutiny as exchanges move forward with their plans to delist, suggesting that Tether’s financial strength may be impacted by the evolving regulatory landscape.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.