Kraken May Remove USDT Support in EU Following New MiCA Regulations

The Kraken exchange is considering canceling support for USDT, the largest stablecoin, in the European Union if it does not comply with new MiCA rules. The exchange aims to comply with regulations governing crypto asset markets, which are expected to come into effect this year.

Since last year, the European Banking Authority (EBA) has urged stablecoin issuers to follow “guidelines” for operating in Europe. However, the EBA has not yet finalized these guidelines, which include restrictions on stablecoins offered by issuers, e.g. Attached.

Kraken exchange plans to remove USDT support in the European Union

Kraken stressed that it is analyzing all possible scenarios in Europe, including the possibility of delisting USDT if it becomes unsustainable. The Exchange continually reviews the regulatory positions of European Union authorities.

“What we are clear about is that the type and number of stablecoins offered today in Europe are unlikely to be available in the future. At some point there will be a limit at which this will no longer be possible. This will largely depend on the assets registered in the European electronic money system. He said Marcus Hughes, Global Head of Regulatory Strategy at Kraken.

Kraken is one of several exchanges expressing concerns over the legal status of stablecoins in Europe. In March, she was suspended OKX another major exchange, supports USDT, citing regulatory uncertainty. This measure, initially preventive, now seems to be part of a broader trend within the European Union.

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Tether suggested that exchanges should focus on euro liquidity for European customers and keep USDT as an option. Tether CEO Paolo Ardoino expressed concerns about the MiCA requirements, highlighting the need for stablecoins to maintain 100% reserves in treasuries in order to avoid bank failure.

“Stablecoins should be able to hold 100% of reserves in Treasuries, rather than exposing themselves to bank failure while holding a significant portion of reserves in uninsured cash deposits. We hope to continue the dialogue with regulators of the EU to address these concerns. Arduino.

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In 2023, I noticed ABE The growing issuance of stablecoins has highlighted the need for good governance and risk management rules, even before their implementation. Mica. The rise in the use of stablecoins in the EU primarily facilitates the exchange of other digital assets.