Kraken Enforces Liquidation of Seven Assets for UAE Clients
In a recent official update, Kraken has initiated a targeted asset-handling process for its users in the United Arab Emirates. Starting September 15, the exchange will begin the mandatory liquidation of seven specific digital asset balances held in user accounts, with the entire operation window closing on September 25.
List of Affected Assets and Key Timeline
The scope of assets involved is notable, primarily including privacy-focused coins and certain stablecoins:
- XMR (Monero)
- ZEC (Zcash)
- DASH
- USDD
- DAI
- USDS
- USDE
The disabling of related services was phased. Trading and deposit functions for these assets were halted as early as June 16. A more critical step came on September 14 at 14:00 UTC, when withdrawals were permanently disabled. At the point of the announcement, users had no remaining recourse to manage these balances aside from awaiting the forced liquidation.
Exchange's Explanation and Open Questions for Users
Kraken's announcement frames this move as an outcome of a "routine asset review," without citing any specific regulatory directives from UAE or other authorities. This leaves the precise rationale somewhat ambiguous.
A significant point of concern for users is the liquidation detail. The announcement clearly states that prior to the execution of the liquidation process, the exchange cannot confirm in which currency users will ultimately receive the proceeds. This creates uncertainty, as users cannot know in advance whether their assets will be converted to US Dollars, Euros, or another major cryptocurrency.
For users in the UAE, this means they must accept the automatic liquidation of these specific assets within the ten-day window, with both the liquidation price and the final settlement currency pending further communication from the platform.