Share this article
Major crypto exchange Kraken is considering delisting Tether (USDT) from its EU platform to comply with the upcoming Markets in Crypto-Assets (MiCA) regulations, according to a recent report from Bloomberg.
The European Union is setting MiCA regulations for crypto trading, specifically targeting stablecoins like Tether’s USDT. These rules will be enforced starting in July and will likely restrict how these stablecoins are offered in the EU.
In a Thursday interview, Marcus Hughes, Kraken’s global head of regulatory strategy, said they are waiting for clearer guidance on the rules before making a final decision.
“We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT. It’s something that we’re actively reviewing, and as the position becomes clearer, we can take firm decisions on that,” Hughes stated.
In response to Kraken’s considerations, Tether emphasized the importance of focusing on Euro liquidity for European customers while maintaining USDT as a transaction gateway.
Paolo Ardoino, Tether’s CEO, has also voiced concerns about certain MiCA requirements and indicated that Tether will continue engaging with regulators. However, the company does not intend to be regulated under MiCA in the medium term.
The MiCA regulations aim to establish a licensing system for stablecoin issuers and impose stricter corporate governance and reserve management requirements.
Kraken anticipates that under MiCA, many stablecoins currently available in the EU will likely be delisted.
“It’s an evolving picture. What we’re clear on is that the scope of the type and number of stablecoins that are offered today in Europe are unlikely to be able to be offered going forward,” Hughes added. “At some point in the future, there’ll be a cut off at which that won’t be possible. A lot of that will depend on which assets are being properly registered within the European Union under the e-money regime.”
As the European Banking Authority finalizes the technical standards for MiCA, exchanges like Kraken are preparing for a future in which the current range of stablecoins may not be sustainable in Europe.
OKX, another crypto exchange, already limited USDT functionality in the EU earlier this year.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source
