In a recent development, a Kraken executive has denied any plans to delist Tether’s USDT stablecoin in Europe. Mark Greenberg, the Global Head of Asset Growth & Management Business at Kraken, stated that the company is exploring all options to ensure that USDT remains available under the upcoming regulatory regime. Despite the uncertainties surrounding the finalized rules, Kraken is committed to following all legal requirements, even those it may not fully agree with.
Compliance with MiCA Regulations
The impending regulatory framework that Kraken is preparing for is the EU’s Markets in Crypto-Assets (MiCA) legislation, set to come into force in July. This legislation mandates that fiat-backed stablecoin issuers must register as electronic money institutions (EMIs) and comply with various other criteria. Greenberg emphasized that Kraken is actively working towards relisting certain coins that were previously delisted in Germany, although the specific coins were not disclosed.
On May 17, Bloomberg reported on the possibility of Kraken delisting USDT in the EU, citing statements from Kraken Global Head of Regulatory Strategy Marcus Hughes. Hughes suggested that there could be circumstances where listing certain tokens such as USDT might not be feasible under the new regulatory environment. However, a Kraken spokesperson quickly refuted these claims shortly after the Bloomberg article was published, stating that there are no current plans to delist or modify USDT trading pairs. Despite this assurance, the spokesperson acknowledged that Kraken continuously evaluates its global strategy and operations to ensure compliance with evolving regulations.
In light of the changing regulatory landscape, USDT issuer Tether remains confident that EU exchanges will maintain their USDT trading pairs. On the other hand, OKX, another major exchange, has already delisted USDT in Europe but intends to continue listing USDC, a competing stablecoin. The broader implications of MiCA may indeed lead to a reduction in the variety and availability of stablecoins in the European region, as warned by industry experts.
Overall, while the future of USDT in Europe remains uncertain, Kraken is taking proactive steps to navigate the regulatory challenges and ensure compliance while striving to offer a diverse range of stablecoin options for its customers. The evolving regulatory environment in the EU is prompting exchanges to reevaluate their offerings and adapt to the new rules to maintain transparency and trust within the crypto community.