San Francisco-based cryptocurrency exchange Kraken is reportedly considering whether to withdraw support for the stablecoin USDT in the European Union (EU).
Bloomberg reported that Kraken is “actively considering” European support for a Tether-issued stablecoin.
A European digital asset trade association and think tank has warned that the EU’s Markets for Crypto Assets Regulator (MiCA) could ban the largest stablecoin by trading volume.
MiCA is an upcoming EU bill that will provide rules covering the supervision, consumer protection, and environmental protection of cryptocurrency assets. The law also includes measures to reduce financial crime, including market manipulation, money laundering and terrorist financing. It is scheduled to take effect from December 2024.
USDT is the largest stablecoin by market capitalization and aims to maintain a 1:1 peg with the US dollar.
Marcus Hughes, head of global regulatory strategy at Kraken, told Bloomberg that the company’s stablecoin product is “an evolving picture.”
“We are prepared for all situations, including situations where certain tokens, such as USDT, cannot be listed. “This is something we are actively reviewing, and once our position becomes clear, we will be able to make a firm decision on this,” he said.
Hughes acknowledges that Kraken is likely to see a reduction in the number of stablecoins it currently offers in Europe.
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