As a researcher with experience in the cryptocurrency industry, I find the potential delisting of Tether’s USDT stablecoin from Kraken in the EU concerning. The impending MiCA regulations are expected to significantly impact stablecoins offered to European investors, and exchanges like Kraken are carefully considering their options in light of these new rules.
Cryptocurrency exchange Kraken is considering delisting the USDT stablecoin in the EU.
As a researcher, I’ve come across a Bloomberg report indicating that the exchange is currently evaluating potential delisting plans for USDT. This decision may be influenced by the upcoming European regulatory framework for digital assets, set to take effect in July.
The upcoming MiCA regulations from the European Union are expected to impact Tether’s stablecoin, as these rules will introduce limits for European investors seeking to use this stablecoin. The European Banking Authority is still in the process of finalizing these guidelines.
“We are thoroughly preparing for various scenarios, some of which involve instances where it’s impractical or impossible to provide a definitive list of tokens like USDT.”
Marcus Hughes, Kraken’s global head of regulatory strategy
Tether’s response
Experts at Tether anticipate that cryptocurrency exchanges will prioritize providing euro liquidity for European clients, while continuing to offer USDT as a short-term alternative. Notably, Tether’s CEO, Paolo Ardoino, has stated previously that Tether does not intend to comply with MiCA regulations in the near future.
As a researcher studying the latest developments in the cryptocurrency market, I’ve discovered that in March, OKX, another prominent crypto exchange, decided to halt USDT trading for users residing in the European Union. This move was most likely influenced by the impending regulatory framework for cryptocurrencies under MiCa (Markets in Crypto-Assets).
Legal framework and compliance
In simpler terms, the MiCA regulation enables crypto exchanges and digital asset custodians based outside the EU to operate legally within the European Union. Additionally, this legislation sets guidelines for how stablecoin issuers must conduct their business.
Once the MiCA law is enacted, cryptocurrency businesses will need to secure registration in any European Union member state. This authorization grants them the ability to conduct business across the entire EU. The MiCA regulations concerning stablecoins are expected to take effect as soon as June 2024.
Read More
Sorry. No data so far.
2024-05-17 20:08