Kraken joins another exchange of USDT due to compliance with markets in regulating encrypted assets (MICA).
The deletion will happen in stages, as all the remaining holdings have been converted automatically by March 31, 2025, to compatible Stablecoin like US dollar (USDC).
in Blog postKrakon said:
We have made a difficult decision to change Stablecoin’s offer to customers in the European Economic Zone (EA). These changes eventually ensure that Kraken remains compatible, and can provide its exceptional commercial experience for European customers in the long run.
Kraken deletes Usdt and other non -compatible symbols
Besides Usdt, the affected Stablecoins includes Paypal usd (Pyusd), Tether Euro (Ert), Trueusd (Tusd), and Terrausd (UST). The process begins on February 13, 2025, when the margin trading of these assets is assigned to “reduce only” EEA customers. By February 27, immediate trading will move to the “sale only” mode, and new deposit addresses will not be created for these stablecoins.
By March 17, any distinct margin positions that include these assets will be closed automatically, while immediate trading will be completely disabled by March 24, with all open orders canceled. After March 31, 2025, any remaining holdings of these assets will be converted automatically to Stablecoin compatible with mica compatible, and the deposits of these shattered assets will limit the withdrawals only.
KRAKEN, which runs virtual asset service services (VASP) throughout Germany, Spain, Italy, the Netherlands, Belgium, Ireland, France and Poland in May 2024 that it might cause Usdt to be deleted to comply with the laws of mica.
But it is now official, and the Kraken step comes after similar measures taken by other major exchanges. As Cryptomode I mentionedCrypto.com recently announced that it will delete USDT with nine Stablecoins in Europe by January 31, 2025, while allowing users to withdraw their holdings until March 31.
