Kraken Considers Dropping Support for Tether’s USDT Stablecoin in EU
Kraken, a popular cryptocurrency exchange, is contemplating dropping support for Tether’s USDT stablecoin in the European Union, according to a report by Bloomberg on May 17.
Marcus Hughes, Kraken’s Global Head of Regulatory Strategy, mentioned that the company is preparing for situations where it may no longer be feasible to list specific tokens like USDT in light of upcoming regulatory changes. The EU is set to implement new rules with the Markets in Crypto-Assets (MiCA) guidance in July, requiring companies issuing fiat-backed stablecoins to register as electronic money institutions (EMIs) and adhere to certain regulations.
Hughes highlighted that these new regulations could lead to a reduction in the number and types of stablecoins available in Europe, depending on how firms comply with the EU’s regime.
However, a Kraken spokesperson clarified in a separate report by The Block that the exchange currently has no plans to delist Tether or make changes to its USDT trading pairs as part of its global compliance strategy.
Tether, in response to the potential delisting, expressed its expectation for exchanges to continue supporting USDT as a gateway for European customers, while also providing liquidity in euros.
The company’s Chief Technology Officer, Paolo Ardoino, voiced concerns about MiCA’s strict regulations on reserve management and stated that Tether currently has no intentions of seeking regulatory approval in the EU.
Several other cryptocurrency exchanges have made similar moves in preparation for MiCA, such as OKX delisting Tether for EU users in March without explicitly mentioning the upcoming regulations. Binance France’s head of legal also hinted at the possibility of delisting all stablecoins in Europe in the near future.
It is important to note that mentioned parties have either not provided a direct response or have clarified their stance on the matter.
