Cryptocurrency exchange Kraken is “actively considering” whether to delist the stablecoin Tether. USDT
+0.0058%
) Bloomberg in the European market report.
The move, which the company is still considering, would end support for Tether on the exchange’s European platform following MiCA approval. Marcus Hughes, head of global regulatory strategy at Kraken, told Bloomberg: “Exchanges are absolutely planning for every contingency, including the inability to list certain tokens like USDT.” “This is something we are considering,” he added. Hughes added that the company will make a final decision “once the position becomes clearer.”
When The Block reached out to Kraken for comment, a company spokesperson said, “There are currently no plans to delist Tether or change the USDT trading pair. As a leading cryptocurrency exchange, we are continuously evaluating our global strategy and operations. We “We are committed to complying with the rules as we continue our mission to accelerate the adoption of this asset class.”
If Kraken decides to delist its stablecoin, the company would follow OKX, which stopped supporting Tether trading pairs in Europe in March as stablecoin regulations loom.
The regulation, called Markets in Cryptocurrency Assets (MiCA), issued by the European Banking Authority, was approved in April 2023. The regulatory framework requires stablecoins issued in these regions to pass heightened regulatory requirements. The MiCA implementation will be rolled out in multiple phases, with specific applications scheduled for mid-2024 and other rules targeted for entry into force by December 2024.
According to The Block’s data dashboard, Tether holds 69.6% of the $167.78 billion USD-pegged stablecoin supply, or $116.76 billion.
Tether is negotiating with regulators.
Tether CEO Paolo Ardoino said in April that the company was “still discussing our concerns with regulators” and that the proposed rules “pose significant risks to stablecoins regulated in the EU.” “It is,” he added.
“Uninsured cash deposits are not a good idea,” Ardoino continued. “We need to learn from what happened with Silicon Valley Bank and another major stablecoin in the U.S. If a bank goes bankrupt, so does its uninsured cash. Stablecoins don’t expose 100% of their reserves to government bonds, but rather to government bonds. If a bank fails, the securities will be returned to their lawful owners and will continue to work with EU regulators to resolve these issues. I’d like to talk.”
Update (May 17, 19:30 UTC): Added comment from Kraken spokesperson.
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