Kraken remains committed to keeping USDT in the E.U. despite facing regulatory obstacles.
Despite facing regulatory hurdles, Kraken, one of the globe’s premier cryptocurrency exchanges, stands firm on retaining Tether’s USD stablecoin (USDT) on its platform. Mark Greenberg, Kraken’s Global Head of Asset Growth & Management Business, affirmed this commitment on May 19 through a post on X, dismissing rumors of potential delisting. Greenberg acknowledged the significant demand for USDT among European clientele, assuring that Kraken would explore all avenues to maintain its listing.
Emphasizing their stance, @krakenfx reiterated their dedication to continuing USDT listings in Europe, underscoring the value European users place on USDT access. Despite Kraken’s intentions, Greenberg cautioned that adherence to yet-to-be-defined legal obligations in Europe could necessitate USDT delisting in the foreseeable future.
Speculation surrounding delisting surfaced on May 17 following a Bloomberg report indicating Kraken’s active scrutiny of Tether’s status under MiCa regulations. Kraken’s recent partnership with DLT Finance for operations in Germany led to the removal of numerous cryptocurrencies unsupported by the new collaborator, introducing uncertainty within the region. Responding to a user’s query, Greenberg hinted at plans to reintroduce some of the delisted assets soon.
In March, OKX opted to delist Tether’s USDT stablecoin for users in the European Union and the European Economic Area (EEA), citing a strategic focus on bolstering euro-denominated liquidity. Despite this, OKX assured users that the decision would affect only a fraction of its user base. The exchange expanded its offerings within the EEA, including various euro fiat onramps and euro pairs, while still allowing EEA-based users to utilize USDT for deposits, withdrawals, and over-the-counter (OTC) trading.
OKX’s move hints at forthcoming regulatory obstacles for USDT in the region, with the European Union gearing up to enforce its comprehensive digital asset regulatory framework, MiCA. Under MiCA, stablecoin issuers must operate as regulated electronic money institutions, potentially rendering many stablecoins illegal if not duly authorized and regulated. Circle, the issuer behind USDC and EURC, has initiated steps to comply with these regulations by pursuing an electronic money institution license in the E.U.