Kraken Exchange contemplates the gradual removal of the Tether (USDT) stablecoin from its platform in light of the forthcoming MiCA regulation.
The potential implementation of a regulatory framework for digital assets in July could result in the removal of USDT, a stablecoin anchored to the United States dollar, from the Kraken trading platform.
Will Tether USDT Be Delisted From The Kraken Platform?
According to reports, the leading cryptocurrency exchange is considering delisting the stablecoin from its European Union platform. In a Thursday interview, Marcus Hughes, the global head of regulatory strategy for Kraken, verified that the decision is being reviewed. Hughes stated,
“We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT,” Hughes said “It’s something that we’re actively reviewing, and as the position becomes clearer, we can take firm decisions on that.”
The EU demonstrated its dedication to the digital asset industry within its jurisdiction by implementing the Market in Capital Assets (MiCA) regulatory framework for cryptocurrencies. Long under review, this regulation will be implemented in July 2024, just around summer.
Stablecoins are typically employed by investors seeking to transfer digital assets between exchanges. Nevertheless, these investor-facing stablecoins are subject to limitations imposed by MiCA, as they will be subject to oversight by the European Banking Authority (EBA).
The European Union’s market regulator, ESMA, and the EBA have collaborated to develop additional regulations for stablecoins via Regulatory Technical Standards (RTSs).
The profound endeavor to regulate stablecoins is motivated by the lamentable failure of Terra Luna’s UST in 2022.
Tether CEO Identifies Discrepancies in MiCA
In response to the circumstance, Tether stated that it expects exchanges to “appropriately prioritize EUR liquidity for European customers while maintaining USDT as an on-ramp off-ramp solution.”
Furthermore, the issuer of USDT emphasized that its CEO, Paolo Ardoino, had previously voiced apprehensions regarding specific facets of the MiCA regulation and its stipulations.
Tether has expressed its dedication to achieving agreement with regulators from various jurisdictions; however, Arduino has declared that the company currently does not intend to be subject to regulation under MiCA’s framework.
In Europe, exchanges such as OKX have eliminated USDT from their platforms before Kraken in preparation for MiCA implementation. Notably, implementation of the MiCA regulation will not occur until 2025.
