Kraken’s Stablecoin Shake-Up: EU Rules, Tears, and Crypto Chaos

So, Kraken—yes, the crypto exchange that sounds like a sea monster—has decided to drop USDT and four other stablecoins in Europe. Why? Because the EU’s MiCA regulations are here to ruin everyone’s fun. 🎉 The delisting begins on February 13, 2025, and wraps up by March 31, 2025. That’s right, folks, mark your calendars for the Great Stablecoin Purge.

The victims? PayPal USD, Euro Tether, TrueUSD, and TerraClassicUSD. Starting February 13, Kraken will put these coins in “reduce-only” mode, which is crypto-speak for “you can sell, but don’t even think about buying.” By February 27, it’s sell-only, and by March 24, spot trading is dead. Any stragglers left by March 31 will be forcibly converted into something else. Think of it as a crypto version of musical chairs, but with more existential dread.

Everyone’s Jumping on the MiCA Bandwagon

Kraken isn’t alone in this regulatory rodeo. Crypto.com and Coinbase are also ditching non-compliant stablecoins like they’re hot potatoes. Crypto.com is cutting ties with ten stablecoins by January 31, 2025, while Coinbase has already axed eight. And USDT? It’s getting the boot by December 2024. 🚀

Paolo Ardoino, Tether’s Chief Technology Officer, isn’t thrilled. He says the EU’s rules are “too stringent” and will slow down stablecoin development. Translation: “This is going to be a nightmare for everyone, especially me.” Starting April 2026, crypto platforms will also have to report transactions and fix errors within 30 days. Because nothing says “innovation” like a mountain of paperwork.

Oh, and if you’re thinking of hiding crypto assets during a tax audit, think again. As of February 2025, anything unreported will be considered income. So, you know, maybe don’t do that. Kraken and other platforms are scrambling to comply, but they’re still open for business in Europe. Just make sure to swap your stablecoins before the deadline, or Kraken will do it for you. And trust me, you don’t want that.

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2025-02-02 20:58