- Kraken is reportedly considering withdrawing support for the stablecoin USDT in Europe.
- The exchange’s deliberations come as firms prepare to comply with the EU’s incoming MiCA crypto rules.
- Crypto exchange OKX stopped supporting USDT trading in the EU in March.
Kraken is reportedly weighing a move to discontinue support for Tether (USDT) on its European platform. According to a Bloomberg report published on May 17, the exchange is “actively reviewing” USDT’s status in the region as it prepares for new regulatory requirements.
Kraken considers USDT delisting as MiCA approaches
Bloomberg’s coverage indicates that Kraken is examining whether to delist USDT for European customers ahead of the Markets in Crypto-Assets (MiCA) regulation taking effect. The potential delisting would form part of the exchange’s broader compliance planning to meet the EU’s stablecoin rules.
MiCA’s stablecoin provisions are scheduled to come into force on June 30, 2024. Additional requirements for crypto-asset service providers in the EU will follow, with further regulatory measures taking effect on December 30, 2024. Exchanges and other service providers with EU operations are reviewing their product offerings and policies to align with these deadlines.
Marcus Hughes, Kraken’s global head of regulatory strategy, told Bloomberg that the company is “absolutely planning for all eventualities.” He added that the exchange will announce a definitive stance when it has completed its review.
If Kraken decides to remove USDT from its European platform, it would join OKX, which ended support for USDT trading pairs in the EU in March as part of its own compliance measures.
Tether remains the largest USD-pegged stablecoin, with a market capitalization exceeding $110 billion and representing roughly 68.7% of the approximately $160 billion stablecoin market. Data from CoinGecko show that USDT continues to be listed on hundreds of exchanges globally.