Kraken plans to shut down Tether (USDT) trading in Europe by March 31

Kraken has announced plans to end support for Tether’s token (USDT) and other non-compliant stablecoins for its European clients by March 31, 2025, due to new regulations under the European Union’s Markets in Crypto Assets (MiCA) framework.

In an email to clients, Kraken confirmed that it will delist USDT, as well as Tether’s euro-pegged stablecoin, PayPal’s PYUSD, UST, and TUSD for users in the European Economic Area (EEA). This decision follows updated guidance from European regulators, which prompted Kraken to act in order to comply with the new regulatory environment.

This move marks a significant step for Kraken, which is the third major crypto exchange to announce the delisting of USDT in Europe. Both Coinbase and Pinetbox.com have also shared plans to cease supporting Tether’s largest stablecoin in the region.

Although Kraken’s delisting of Tether in Europe may impact its European market presence, Tether’s strong profits and global expansion efforts are expected to help mitigate any losses. In 2024, Tether reported a record $13 billion in net profits, largely driven by an all-time high in U.S. Treasury bills held as reserves for its stablecoin. Furthermore, Tether has also strengthened its position by establishing its new headquarters in Bitcoin-friendly El Salvador.

As the crypto industry adjusts to new European regulations, Tether continues to expand its global footprint, navigating regulatory challenges in key markets like Europe.