Kraken Reviews USDT Delisting in Europe

Kraken is considering removing the USDT stablecoin from its offerings in the European Union. According to Bloomberg, the exchange is “actively reviewing” its options in light of upcoming regulatory changes.

The new Markets in Crypto Assets (MiCA) regulations, set to take effect in July, will impose stricter rules on stablecoins available to European investors. These rules, finalized by the European Banking Authority, could impact Tether’s stablecoin significantly.

Marcus Hughes, Kraken’s global head of regulatory strategy, stated, “We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT.”

MiCA aims to allow crypto exchanges and custody service providers to operate legally in the EU, establishing guidelines for stablecoin issuers. Once MiCA is in force, crypto companies must register in one EU member state to operate across the entire bloc. The stablecoin provisions of MiCA will start as early as June 2024.

In response, Tether officials believe exchanges will focus on euro liquidity for EU clients, keeping USDT as a temporary solution. Tether CEO Paolo Ardoino previously mentioned that Tether does not plan to comply with MiCA regulations in the near term.

In March, OKX, another major cryptocurrency exchange, suspended USDT trading for EU users, likely due to the impending MiCA regulations.