- Kraken is reportedly considering withdrawing support for the stablecoin USDT in Europe.
- The exchange’s plans come as it pushes for compliance ahead of MiCA, the EU’s cryptocurrency regulation.
- Cryptocurrency exchange OKX ended support for USDT trading in the EU in March.
Kraken is considering a move for the cryptocurrency exchange to drop support for the Tether (USDT) stablecoin in Europe.
A Bloomberg report published on Friday, May 17, noted that the cryptocurrency exchange is “actively reviewing” this position.
Kraken seeks to delist USDT ahead of the EU’s MiCA regulations.
According to reports, Kraken is considering ending USDT support for its markets ahead of the release date of Market for Cryptocurrency Assets (MiCA) regulations in the region.
The exchange’s delisting of USDT for EU users is part of its compliance process.
Cryptocurrency exchanges and other providers operating in the EU know that MiCA’s stablecoin rules are scheduled to come into effect on June 30, 2024. The comprehensive regulatory framework also includes rules targeting cryptocurrency service providers, which will come into effect on December 30, 2024.
Kraken is “absolutely prepared for every eventuality,” Marcus Hughes, the exchange’s head of global regulatory strategy, told Bloomberg. The cryptocurrency platform will take a firm stance on this at the appropriate time, the official added.
With this move, Kraken will join OKX, which ended support for the USDT trading pair on its European platform in March.
Tether is currently the world’s largest USD-pegged stablecoin with a market capitalization of over $110 billion, accounting for 68.7% of the total $160 billion market. According to data from CoinGecko, USDT is currently available on 347 exchanges.