In the dimly lit corridors of the cryptocurrency exchange known as Kraken, a decision looms, heavy with the weight of compliance and the specter of regulation. The exchange, in its quest to align with the labyrinthine regulations of the European Union, has resolved to cast aside five stablecoins, among them the notorious Tether’s USDt, as if they were mere trifles in a grand game of chess.
Mark your calendars, dear readers, for on the fateful day of March 31, the USDt (USDT) shall be fully delisted, a sacrificial lamb to the altar of the European Union’s Markets in Crypto-Assets Regulation (MiCA). The announcement, dripping with the solemnity of a funeral dirge, echoes through the digital ether.
But wait! Alongside the illustrious USDt, Kraken will also bid adieu to PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST) in a slow, agonizing farewell that would make even the most stoic of souls weep.
“These changes,” the company proclaims with a flourish, “ultimately ensure Kraken remains compliant and is able to provide its exceptional trading experience to European clients for the long term.” Ah, the sweet taste of compliance! 🍷
Ah, the Gradual Delisting Process
In a move that could only be described as a masterclass in bureaucratic finesse, Kraken will implement this delisting in stages, as if they were peeling an onion, layer by layer, to avoid the tears of their clients in the European Economic Area (EEA).
On February 13, the first act of this tragicomedy will unfold, as margin pairs involving the affected assets are set to “reduce-only” mode. EEA clients will find themselves in a peculiar predicament, able only to reduce or fully close out existing margin positions, as if they were trapped in a Kafkaesque nightmare.
By February 27, the tokens will enter “sell-only” mode, a cruel twist of fate that restricts EEA clients from generating deposit addresses for tokens like USDT, yet still allows for trading. The irony is palpable! 😂
And then, on March 24, the curtain will fall, halting all spot trading for the affected assets, closing all open orders and forcing exchanges into other coins or fiat currencies. A tragic end, indeed!
“All remaining EEA client holdings for these assets as of March 31, 2025, will be converted to an equivalent stablecoin,” Kraken solemnly states, adding:
“Any impacted assets for EEA clients deposited to existing addresses after the above deadlines will only be able to be withdrawn.”
Ah, the sweet irony of compliance! Kraken emphasizes that these delistings will only impact clients in the EEA, a region encompassing 30 countries, including Austria, Cyprus, Czechia, Malta, Portugal, Spain, Sweden, and others. A veritable smorgasbord of regulatory delight!
ESMA’s Call for Order in the Chaos
As if the plot could thicken further, Kraken’s announcement coincides with Crypto.com’s own declaration of war against USDT and nine other stablecoins, set to commence on January 31, 2025. The drama unfolds like a Russian novel, filled with twists and turns!
Crypto.com, in a fit of regulatory fervor, will grant its users until the end of the first quarter of 2025 to convert the affected tokens to MiCA-compliant tokens. “Otherwise,” they warn ominously, “they will be automatically converted to a compliant stablecoin or asset of corresponding market value.” The stakes have never been higher! 🎭
The European Securities and Markets Authority (ESMA), the vigilant overseer of MiCA compliance, has urged crypto asset service providers to begin restricting noncompliant stablecoins, lest they plunge the markets into chaos. The agency, in its infinite wisdom, has called for a gradual delisting process to avoid potential market disruptions, as if they were the wise sages of a forgotten age:
“Sudden actions to align with MiCA, as clarified in the European Commission’s guidance, could potentially lead to disorderly crypto-assets markets. […] To mitigate potential disruptions and ensure a smooth and orderly transition, National Compet
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2025-02-01 14:00