This move aligns with the bloc’s evolving regulatory landscape and will impact users across the European Economic Area (EEA).
The exchange confirmed that as of March 31, 2025, USDT ($1.00) and several other stablecoins—including Tether’s euro-pegged token, PayPal’s PYUSD, UST, and TUSD ($1.00)—will no longer be available for trading by European clients. This decision follows 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 informed its European clients via email that it will no longer support USDT, Tether’s euro stablecoin, PayPal’s PYUSD, UST, and TUSD due to evolving regulatory requirements. The decision follows updated guidance from EU regulators, prompting the exchange to act in advance to ensure compliance.
Source: Actual Email Shared on X
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.
Regulatory Pressure and Market Impact
Kraken’s announcement follows months of speculation regarding the fate of USDT in Europe. Reports from May 2024 indicated that the platform was actively considering the suspension of 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 emphasized the company’s efforts to assess all possible scenarios regarding its stablecoin offerings in the region.
Kraken is not the only major exchange taking action in response to MiCA’s regulatory requirements. Both Coinbase and Crypto.com have already disclosed their plans to halt Tether trading in the EU, reinforcing the widespread impact of the new rules. Additionally, OKX made a similar move in March 2024, signaling a growing trend among exchanges aiming to preemptively align with upcoming regulatory standards.
Tether’s Response and Market Adaptation
Despite the wave of delistings, Tether has continued to expand its global presence. In 2024, the company reported record profits of $13 billion, driven by an increase in U.S. Treasury reserves backing its stablecoin. Additionally, El Salvador, a country known for its pro-crypto stance, has welcomed Tether by allowing the firm to establish its new headquarters in the Central American nation.
Tether’s leadership has indicated 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.
With the March 31 deadline approaching, European Kraken users will need to transition away from USDT and other delisted stablecoins.
