Kraken cryptocurrency exchange considering ending support for USDT in the EU
Kraken cryptocurrency exchange is considering the possibility of ending support for the USDT stablecoin in the European Union due to new regulatory requirements. The new set of rules, MiCA, regulating the circulation of stablecoins in EU countries, will come into effect on June 30, 2024, with full implementation of all rules related to digital assets expected by the beginning of 2025.
Regulatory evaluation
Marcus Hughes, head of regulatory strategy at Kraken, stated that the exchange is evaluating various scenarios, including the potential delisting of stablecoins like USDT, if necessary to comply with the new regulatory requirements. A final decision will be made once the position of EU regulators becomes clearer.
Response from Tether
Representatives from Tether, the company behind USDT, have indicated that they anticipate a decrease in interest from European exchanges in USDT, as they may focus on more liquid euro-denominated assets. However, they believe that USDT will continue to serve as a reserve instrument.
OKX discontinues USDT trading pairs
In March 2024, another major cryptocurrency exchange, OKX, announced the discontinuation of trading pairs with the USDT stablecoin in the European Economic Area, also in response to new regulatory requirements.
Adapting to new requirements
These changes highlight the increasing pressure on cryptocurrency platforms in the EU, forcing them to adapt to new requirements in order to avoid sanctions and ensure compliance with new norms.
