Kraken May Drop USDT Due To Upcoming EU Rules: Report

Key Points:

• Kraken considers delisting USDT due to new EU regulations.
• OKX changes USDT trading support in the EU.
• Token issuers must obtain a license by June 30 under new rules.

Kraken may drop USDT in the EU due to upcoming MiCA regulations. Other exchanges adapt, with OKX limiting USDT in the EU. New rules will require token issuers to be licensed.

Kraken exchange is reportedly assessing the possibility of delisting Tether’s USDT stablecoin in the European Union due to upcoming regulatory changes.

Kraken May Drop USDT Due to 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.

Readmore: Pyth Grants $50 Million In PYTH To Stimulate Ecosystem Growth

Crypto-Exchanges Adapt to Upcoming EU Regulations

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.

Post-MiCA European Headquarters Selection by Kraken

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.