With new regulations in Europe set to enforce strict limits on transactions and reserve requirements, Kraken is assessing its stablecoins listing.
Crypto exchange Kraken is considering removing support for stablecoin Tether (USDT) in the European Union as the Markets in Crypto-Assets Regulation (MiCA) is set to take effect.
According to a Bloomberg report on May 17, Kraken is “actively reviewing” plans to comply with the upcoming MiCA framework. The regulation will be applied in two phases: rules applicable to stablecoins (asset-referenced, or ARTs, and e-money tokens, or EMTs) will come into force on June 30, 2024, while rules applicable to crypto service providers will take effect on Dec. 30, 2024.
Responding to Kraken’s remarks, Tether reportedly said it expects exchanges to “rightfully focus on EUR liquidity for European customers, while maintaining USDT as an on-ramp off-ramp solution.”
