Key Points:
Kraken exchange is reportedly assessing the possibility of delisting Tether’s USDT stablecoin in the European Union due to upcoming regulatory changes.
The new EU regulations, known as MiCA, are set to be implemented in July and will impose restrictions on stablecoins available to investors in the region. Stablecoins are predominantly used by traders to transfer digital assets between exchanges or as a safeguard against token price volatility.
“We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT,” Marcus Hughes, Kraken’s global head of regulatory strategy, said in a recent interview.
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In response to the comments made by Kraken, Tether stated that the company expects exchanges to focus on Euro liquidity for European customers while maintaining USDT as a solution for entering and exiting the market.
Moreover, other crypto-exchanges are also adapting to these impending regulatory changes. OKX, one of the world’s largest crypto exchanges, has already modified its trading support for USDT in the EU, removing the ability to use the stablecoin to buy or sell other cryptocurrencies.
The European Banking Authority is currently finalising the technical guidance for MiCA, expected to be fully operational by the beginning of 2025.
These new regulations will necessitate issuers of asset-referenced and e-money tokens to attain a license from a national financial authority in at least one member state by June 30.
Kraken is also in the advanced stages of selecting its post-MiCA European headquarters, with France and Ireland being popular choices among competitors like Coinbase, Binance, and Gemini.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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