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Kraken, a prominent cryptocurrency exchange, is reportedly contemplating the removal of Tether (USDT) from its platform in the European Union (EU) to comply with forthcoming regulations known as Markets in Crypto-Assets (MiCA).
These regulations, expected to take effect in July, are designed to regulate crypto trading, particularly stablecoins like USDT, in the EU.
Marcus Hughes, Kraken’s global head of regulatory strategy, expressed the need for clearer guidance on the rules before any definitive action is taken. He indicated that Kraken is preparing for various scenarios, including the potential delisting of tokens like USDT, and will make firm decisions once the regulatory landscape becomes clearer.
Tether responded by emphasizing the importance of maintaining Euro liquidity for European customers while still utilizing USDT for transactions. Paolo Ardoino, Tether’s CEO, voiced concerns about MiCA requirements but stated that Tether does not plan to fall under MiCA regulation in the near future.
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MiCA regulations aim to establish a licensing system for stablecoin issuers and impose stricter governance and reserve management requirements. Kraken anticipates that many stablecoins currently available in the EU may be delisted under these regulations.
Following the publication of the report, Kraken clarified that there are currently no plans to delist Tether or alter USDT trading pairs. They stated their commitment to evaluating their global strategy to ensure compliance with regulations.
As MiCA regulations are finalized, exchanges like Kraken are preparing for potential changes in the stablecoin landscape in Europe. Earlier this year, OKX, another major exchange, already limited USDT functionality in the EU.