Regulation
Kraken is actively looking into suspending USDT in the EU under the MiCA regulation
Cryptocurrency exchange Kraken is considering removing the USDT stablecoin from the EU.
Second a Bloomberg report, the exchange is “actively reviewing” delisting plans. The possible abandonment of USDT is due to the new regime for digital assets, which will come into force in the EU in July.
Tether stablecoin will likely be affected by new EU rules, especially cryptocurrency markets (Not) regulations. The guidelines, which have yet to be finalized by the European Banking Authority, will impose restrictions on stablecoins offered to European investors.
“We are absolutely planning for every eventuality, including situations where it is simply not sustainable to list specific tokens as USDT.”
Marcus Hughes, global head of regulatory strategy at Kraken
Tether’s response
Bind Officials expect exchanges to focus on euro liquidity for EU clients, keeping USDT as a temporary solution. However, Tether CEO Paolo Ardoino had previously indicated that Tether has no intention of being regulated by MiCA rules in the medium term.
In March, another major cryptocurrency exchange, OKX, suspended USDT trading for users in the European Union. This decision was likely influenced by the upcoming regulation of cryptocurrencies under MiCa.
Legal framework and compliance
MiCA will allow cryptocurrency exchanges and companies providing cryptocurrency custody services to offer their products legally in the EU. The law also establishes rules for the operation of stablecoin issuers.
After the MiCA law comes into force, crypto companies will have to obtain registration in one of the bloc’s member states, allowing them to operate across the EU. Not stable currency the provisions will come into force as early as June 2024.