Regulation
Cryptocurrency Exchange Kraken Mulls Offers Backing to Leading USDT Stablecoin in EU: Report
San Francisco-based cryptocurrency exchange Kraken is reportedly considering whether to withdraw support for the USDT stablecoin in the European Union (EU).
Bloomberg relationships that Kraken is “actively reviewing” its European support for the Tether-issued stablecoin.
European digital asset trade associations and think tanks have done so warned that the EU’s Cryptocurrency Markets Regulation (MiCA) could ban the largest stablecoins in terms of trading volume.
MiCA is the upcoming EU legislation that will provide rules on oversight, consumer protection and environmental safeguards of crypto assets. The law also includes measures aimed at reducing financial crimes including market manipulation, money laundering and terrorist financing. His scheduled will come into force in December 2024.
USDT it is the largest stablecoin by market capitalization and aims to maintain a 1:1 peg to the US dollar.
Marcus Hughes, global head of regulatory strategy at Kraken, tells Bloomberg that their stablecoin offerings are “an evolving picture.”
“We are absolutely planning for all eventualities, including situations where it is simply not sustainable to list specific tokens like USDT. It is something we are actively examining and, as the position becomes clearer, we will be able to make firm decisions on this matter.”
Hughes acknowledges that the number of stablecoins currently offered by Kraken in Europe will likely be reduced.
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