Regulation
Kraken may delist USDT in the EU to comply with MiCA
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Leading cryptocurrency exchange Kraken is considering removing Tether (USDT) from its European Union (EU) platform to comply with upcoming Markets in Crypto-Assets (MiCA) regulations, according to a recent relationship from Bloomberg.
The EU is finalizing MiCA regulations for cryptocurrency trading, specifically targeting stablecoins like Tether’s USDT. These rules will take effect starting in July and will likely limit how these stablecoins will be offered in the EU.
In an interview on Thursday, Marcus Hughes, Kraken’s global head of regulatory strategy, said they were waiting for clearer guidance on the rules before making a final decision.
“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 looking at and as the position becomes clearer we will be able to make firm decisions about it,” Hughes said.
In response to Kraken’s considerations, Tether highlighted the importance of focusing on euro liquidity for European customers while maintaining USDT as a transaction gateway.
Paolo Ardoino, CEO of Tether, also expressed concern about some MiCA requirements and indicated that Tether will continue to engage with regulators. However, the company does not intend to be regulated by MiCA in the medium term.
The MiCA regulations aim to establish a licensing system for stablecoin issuers and impose stricter requirements on corporate governance and reserve management.
Kraken predicts that with MiCA many stablecoins currently available in the EU will likely be canceled.
“It’s an evolving picture. What we are clear about is that the scale of the type and number of stablecoins offered in Europe today is unlikely to be offered in the future,” added Hughes. “At some point in the future, there will be a limit beyond which this it will not be possible. Much will depend on which assets are correctly registered within the European Union under the electronic money regime.”
Following the publication of this article, Kraken contacted CryptoBriefing to provide the following statement from a spokesperson:
“There are currently no plans to delist Tether or change our USDT trading pairs. As a leading cryptocurrency exchange, we are constantly evaluating our global strategy and operations to ensure we remain compliant both now and in the future. We are committed to following the rules as we continue our mission to accelerate the adoption of this asset class.”
As the European Banking Authority finalizes the technical standards for MiCA, exchanges like Kraken are preparing for a future where the current lineup of stablecoins may not be sustainable in Europe.
OKX, another major cryptocurrency exchange, had already limited USDT functionality in the EU earlier this year.
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