Kraken Weighs Delisting Tether’s USDT Amid Upcoming EU Crypto Regulations

Due to upcoming EU regulations, Kraken, a major cryptocurrency exchange, is considering removing Tether’s USDT stablecoin from its European platform. In a recent interview with Bloomberg, Marcus Hughes, Kraken’s global head of regulatory strategy, confirmed this possibility.

The European Union will implement new rules for digital assets, called the Markets in Crypto-Assets (MiCA), in July. These rules will likely introduce strict regulations for stablecoins, potentially impacting the status of USDT in the European market.

“We are planning for all possibilities, including situations where we cannot list specific tokens such as USDT,” Hughes stated. He said Kraken is carefully reviewing the situation and will make decisions as the regulatory landscape becomes clearer.

In response to Kraken’s considerations, Tether, the issuer of USDT, highlighted its expectation that European exchanges prioritize euro liquidity for customers while potentially still using USDT as a bridge currency for entering and exiting the crypto market.

Kraken Faces Potential USDT Delisting Amid MiCA Regulation Challenges

Paolo Ardoino, Tether’s CEO, has expressed concerns about certain MiCA requirements. While Tether is currently discussing with regulators, Ardoino has indicated the company does not plan to comply with MiCA regulations immediately.

Earlier this year, another cryptocurrency exchange, OKX, changed its support for USDT in the EU. OKX users can still deposit, withdraw, and convert USDT to euros but cannot use it to trade other cryptocurrencies on the platform.

The European Banking Authority is finalizing the technical details for MiCA, with full implementation expected by 2025. Notably, the new regulations will require stablecoin issuers to obtain licenses within at least one EU member state and follow stricter governance and reserve management standards.

This upcoming regulatory shift in the European Union highlights the evolving landscape for stablecoins and cryptocurrency exchanges. Kraken’s potential delisting of USDT reflects the challenges posed by MiCA, while Tether’s stance indicates a potential clash between regulators and stablecoin issuers.

The coming months will be crucial in determining how the European market adapts to this new regulatory framework and its impact on the broader cryptocurrency ecosystem.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.