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Kraken to Delist Tether’s USDT for European Clients Amid EU Regulations
Kraken, a prominent cryptocurrency exchange, has announced plans to discontinue support for Tether’s USDT and other non-compliant stablecoins for its European clients, citing new regulations established by the European Union.
The decision, set to take effect on March 31, will result in the delisting of the $140 billion U.S. dollar stablecoin Tether (USDT), as well as Tether’s euro stablecoin, PayPal’s PYUSD, UST, and TUSD for users in the European Economic Area.
Regulatory Compliance Behind the Decision
According to an email sent to clients, the updated guidance from European regulators prompted Kraken to take this step to ensure compliance with the Markets in Crypto Assets Regulation framework. This decision is not unique to Kraken, as other major cryptocurrency exchanges, including Coinbase and Crypto.com, have also announced plans to end support for Tether’s USDT in Europe.
Impact on Tether and the Crypto Market
Despite the wave of delistings, Tether’s strong financial performance and expansion efforts may help mitigate potential losses from the European market. The company reported a record $13 billion in net profits in 2024, driven by an all-time high in U.S. Treasuries held as reserves for its stablecoin.
Tether has also expanded its presence in El Salvador, a Bitcoin-friendly nation, where it has established its new headquarters in Central America.
Tips for Affected Users
If you are a Kraken user in the European Economic Area, consider the following:
- Take necessary action to manage your USDT holdings before the delisting deadline on March 31.
- Explore alternative stablecoins that comply with EU regulations.
- Stay informed about regulatory updates and their impact on the crypto market.
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“These changes weren’t needed until this point, recently updated guidance from European regulators led us to this decision to delist these assets to ensure our clients have enough time to take necessary action.”
