Kraken considers ending USDT support in the EU

Kraken is reportedly considering attracting support for stablecoin USDT in Europe.
The exchange's plans come amid a push to comply with EU crypto regulations ahead of the MCA.
Crypto exchange OKX ended its USDT trading support in the EU in March.

Crypto exchange Kraken is considering a move to end support for the Tether (USDT) stablecoin in Europe.

A Bloomberg report published on Friday, May 17 stated that the crypto exchange was “actively evaluating” this position.

Kraken Ying USDT early withdrawal from EU MCA rules

According to the report, Kraken is looking to end support for the USDT market ahead of the date of the withdrawal of the Regional Markets by Crypto-Assets (MiCA) regulation.

Delisting USDT is part of the compliance process for EU users of the exchange.

Crypto exchanges and other providers with operations in the European Union know that MiCA's stablecoin regulations are set to take effect on June 30, 2024. The general regulatory framework also includes regulations aimed at cryptocurrency service providers – these will come into effect on December 30, 2024.

The exchange's head of global regulatory strategy, Marcus Hughes, told Bloomberg that Kraken is “absolutely planning for all eventualities.” The official added that the crypto platform will be firm on this over time.

If it takes this step, Kraken will join OKX, which stopped supporting USDT trading pairs on its European platform in March.

Tether is currently the world's largest USD-pegged stablecoin with a market capitalization of more than $110 billion, accounting for 68.7 percent of the $160 billion market. According to data from CoinGecko, USDT is currently available on 347 exchanges.