Markets
Crypto Exchange Kraken Considers Withdrawing Support for Top Stablecoin USDT in EU: Report
Kraken, the San Francisco-based cryptocurrency exchange, is reportedly considering whether to remove support for the USDT stablecoin in the European Union (EU).
Bloomberg reports that Kraken is “actively reviewing” its European support for the stablecoin issued by Tether.
European digital asset trade associations and think tanks have warned that the European Regulation on Markets in Crypto-Assets (MiCA) could ban the largest stablecoins in terms of trading volume.
MiCA is the next European legislation that will provide rules covering the supervision, consumer protection and environmental protection of crypto assets. The law also includes measures to reduce financial crime, including market manipulation, money laundering and terrorist financing. It is program to come into force in December 2024.
USDT is the largest stablecoin by market capitalization and aims to maintain a 1:1 peg to the US dollar.
Marcus Hughes, Kraken’s global head of regulatory strategy, told Bloomberg that their stablecoin offerings are “an evolving picture.”
“We plan for absolutely all eventualities, including situations where it is simply not tenable to list specific tokens such as USDT. This is something we are actively looking at and, as the situation becomes clearer, we will be able to make firm decisions on it.”
Hughes acknowledges that the number of stablecoins Kraken currently offers in Europe will likely be reduced.
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