Kraken ‘actively reviewing’ USDT suspension in EU under MiCA regulation

Cryptocurrency exchange Kraken is considering delisting its USDT stablecoin in the EU.

The exchange is “actively reviewing” delisting plans, according to a report from Bloomberg. The possible abandonment of USDT is due to the new regime for digital assets that will come into force in the EU in July.

Tether’s stablecoin will likely be affected by new EU rules, particularly CryptoAsset Markets (MiCA) regulations. The guidelines, which have not yet been finalized by the European Banking Authority, will impose restrictions on stablecoins offered to European investors.

“We are definitely planning for all possibilities, including situations where it is not possible to list certain tokens such as USDT.”

Marcus Hughes, Kraken’s head of global regulatory strategy, responds to Tether

Tether officials expect exchanges to focus on euro liquidity for EU customers and keep USDT as a temporary solution. However, Tether CEO Paolo Ardoino previously stated that Tether has no plans to regulate according to MiCA rules in the medium term.

In March, OKX, another major cryptocurrency exchange, suspended USDT trading for users in the European Union. These decisions were likely influenced by the upcoming regulation of cryptocurrencies under MiCa.

Legal framework and compliance

MiCA will allow crypto exchanges and companies providing cryptocurrency custody services to legally offer their products in the EU. The law also sets out the rules for the operation of stablecoin issuers.

Once the MiCA law comes into force, crypto companies must obtain registration in one of the bloc’s member states and thus be allowed to operate throughout the EU. MiCA’s stablecoin provisions will come into force as early as June 2024.