Kraken may withdraw USDT from the EU to comply with the MCA.
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Major crypto exchange Kraken is considering delisting Tether (USDT) from the EU platform to comply with the upcoming MiCA regulations, according to a recent report from Bloomberg.
The European Union is developing MiCA regulations for crypto trading, specifically targeting stablecoins such as Tether USDT. These rules will come into effect from July and may limit how these stablecoins are offered in the EU.
In an interview Thursday, Kraken's head of global regulatory strategy, Marcus Hughes, said they were waiting for clearer guidance on the rules before making a final decision.
We are absolutely planning for all eventualities, including situations where it is impossible to list specific tokens like USDT. “It's something we're actively reviewing, and as the position becomes clearer, we can make firm decisions on that,” Hughes said.
In response to Kraken's comments, Tether emphasized the importance of USDT as a trading gateway for European clients to focus on Euro liquidity.
Tether CEO Paolo Arduino has addressed concerns about some of MiCA's requirements and indicated that Tether will continue to engage with regulators. However, the company does not intend to take control of MiCA in the medium term.
The MiCA regulations require the establishment of a licensing system for coin issuers and strict corporate governance and reserve management requirements.
Kraken anticipates that many stablecoins currently in the EU will be delisted under MiCA.
“It's an evolving picture. What we are clear about is that the variety and quantity of stablecoins offered in Europe today will not be available in the future,” added Hughes. “At some point in the future, there will be a disruption where this is not possible. Many of the electronic money regimes depend on assets that are properly registered in the European Union.
Exchanges like Kraken are preparing for the future as the current stablecoin may not be sustainable in Europe as the European Banking Authority MCA completes technical standards.
OKX, another major crypto exchange, is already committed to USDT functionality in Europe earlier this year.
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