Kraken Delists USDT and Other Stablecoins in Europe, Bowing to Regulatory Pressure

This move aligns with the bloc’s evolving regulatory landscape and will impact users across the European Economic Area (EEA).

Kraken’s European users will no longer be able to trade Tether (USDT) and several other stablecoins on the platform, as per an announcement by the exchange on March 8.

According to an email shared on X, the exchange will be delisting USDT, Tether’s euro stablecoin, PayPal’s PYUSD, UST, and Tاعدة USD (TUSD) from its European platform. This move aligns with the bloc’s evolving regulatory landscape and will impact users across the European Economic Area (EEA).

Kraken confirmed that the stablecoins will no longer be available for trading by European clients as of March 31, 2025. The exchange is taking this step in response to updated guidance from regulators enforcing the Markets in Crypto Assets (MiCA) framework, a set of EU regulations aimed at establishing compliance standards for digital assets.

Kraken’s European clients were informed via email that the exchange will no longer support USDT, Tether’s euro stablecoin, PayPal’s PYUSD, UST, and TUSD due to evolving regulatory requirements. This decision follows updated guidance from EU regulators, prompting Kraken to act in advance to ensure compliance.

In its message, Kraken noted that although these changes were not immediately necessary, the regulatory shift made it imperative to delist these stablecoins, allowing users sufficient time to adjust their holdings accordingly.

Months of speculation preceded Kraken’s announcement regarding the fate of USDT in Europe. Reports from May 2024 indicated that the platform was actively considering suspending Tether trading due to the MiCA framework, which imposes stringent compliance requirements on stablecoin issuers and exchanges. Marcus Hughes, Kraken’s global head of regulatory strategy, previously highlighted the company’s efforts to assess all possible scenarios concerning its stablecoin offerings in the region.

Kraken is not the only major exchange responding to MiCA’s regulatory requirements. Both Coinbase and Crypto.com have already announced their plans to halt Tether trading in the EU, underscoring the new rules’ widespread impact. Similarly, OKX made a move in March 2024, signaling a growing trend among exchanges seeking to preemptively align themselves with upcoming regulatory standards.

Tether’s response and market adaptation

Despite the wave of delistings, Tether has continued expanding its global presence. In 2024, the company reported a record profit of $13 billion, largely due to an increase in U.S. Treasury reserves backing its stablecoin. Moreover, El Salvador, known for its pro-crypto stance, welcomed Tether by allowing the firm to set up its new headquarters in the Central American nation.

Tether’s leadership has stated that while MiCA regulations will require exchanges to prioritize euro-denominated liquidity for European customers, the company itself has no immediate plans to seek compliance under the new EU framework.

As the March 31 deadline approaches, European Kraken users will need to transition away from USDT and other delisted stablecoins.