Regulation
Kraken ‘actively reviewing’ suspension of USDT in EU under MiCA regulations
Cryptocurrency exchange Kraken is considering delisting the stablecoin USDT from the EU list.
According to a Bloomberg report, the exchange is “actively reviewing” delisting plans. The possible abandonment of USDT is due to the new digital asset regime, which will come into force in the EU in July.
Tether’s stablecoin will likely be affected by new EU rules, especially crypto asset markets (Mica) regulation. The guidelines, which have yet to be finalized by the European Banking Authority, will impose restrictions on stablecoins offered to European investors.
“We plan for absolutely all eventualities, including situations where it is simply not tenable to list specific tokens such as USDT.”
Marcus Hughes, Kraken Global Head of Regulatory Strategy
Tether’s response
Attached officials expect exchanges to focus on euro liquidity for EU customers while retaining USDT as a temporary solution. However, Paolo Ardoino, CEO of Tether, previously indicated that Tether does not intend to be regulated by MiCA rules in the medium term.
In March, another major cryptocurrency exchange, OKX, suspended Trading USDT for European Union users. 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 MiCA comes into force, crypto companies must obtain registration in one of the bloc’s member states, allowing them to operate across the entire EU. The MiCAs stable coin the provisions will come into force from June 2024.