Kraken analyzes eliminating USDT to comply with new European rules: Bloomberg – DiarioBitcoin
By Hannah Perez
Given the imminent entry into force of the new rules for stablecoins under the MiCA framework, some cryptocurrency exchanges would be taking measures to ensure compliance in the European market.
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- Kraken “actively” analyzes its commercial listing in the face of the new regulatory situation in Europe
- The stablecoin provision of the EU cryptocurrency law, MiCA, will come into force in June
- OKX has already removed USDT from European markets in response to regulatory changes
- A Kraken spokesperson responded to the report, denying that they have any plans to remove USDT for the time being.
The cryptocurrency exchange Kraken could make the decision to eliminate the stablecoin largest in the world in order to comply with the new regulations of the European Union (EU).
Krakenbased in California, is considering withdrawing commercial support for Tether (USDT) ahead of the upcoming entry into force of the Cryptoasset Markets Act, better known as MiCA, in the EU, as revealed in a report published by Bloomberg this Friday that quotes the statements of a company executive.
“We are absolutely planning for all eventualities, including situations where it is simply not sustainable to list specific tokens like USDT“said Marcus Hughes, global head of regulatory strategy at Krakenin an interview with Bloomberg. “This is something we are actively reviewing. and, as the position becomes clearer, we will be able to make firm decisions on the matter“.
The new EU regulatory framework, applicable to cryptocurrencies, establishes guidelines for the use and marketing of this type of assets at the level of the European Economic Area (EEA), establishing rules for certain stablecoins like USDT.
MiCA became law in 2023 after European lawmakers spent three years developing cryptocurrency-specific regulation. Taking a comprehensive approach, the framework covers cryptocurrency companies such as issuers, exchanges and wallet providers, and introduces a licensing system for all members of the block.
The law includes a specific provision on stablecoins that will go into effect at the end of June. The rest of the regulations will come into force on December 30, 2024, as detailed CoinDesk.
Regulation of the stablecoins under MiCA
The European Banking Authority (EBA) has been working with the EU markets regulator ESMA to establish rules applicable to stablecoins such as USDT under MiCA.
In accordance with Bloombergthe EBA was tasked with overseeing the rules on stablecoinswhich will require issuers of this type of assets to have a license from a national financial authority in at least one member state before June 30. Issuers will also be required to meet higher standards on corporate governance, conflicts of interest and reserve management, such as having at least one-third of all funds in an independent financial entity.
OKX, another major cryptocurrency exchange, already limited USDT functionality for its European customers earlier this year. Although it did not mention the new regulation, the company took steps to phase out the stablecoin.
In response to the considerations of Kraken, Tether He emphasized the importance of the exchange focusing on euro liquidity for European clients while maintaining USDT as a ramp for transactions.
Meanwhile, CEO Paolo Ardoino has expressed concerns about some of MiCA’s requirements and has assured that the company will continue in dialogue with regulators. However, in a previous interview, he said that Tether has no plans to be regulated under MiCA rules in the medium term, as the report recalls.
USDT, pegged to the US dollar, is the largest stablecoin currently with a capitalization of USD $110 billion. It is a type of asset widely used in the world of cryptocurrencies as an entry and exit ramp into the market, as well as a means to store wealth away from the volatility of asset prices. tokens.
Kraken responds to the report Bloomberg
A spokesperson for Kraken issued a response to Bloomberg’s report, denying the platform’s plans to remove USDT trading. “There are no current plans to delist Tether or alter our USDT trading pairs“said a representative of the exchange in a comment sent by email to DailyBitcoin.
“As a leading cryptocurrency exchange, we are constantly evaluating our global strategy and operations to ensure we remain compliant both now and in the future. We are committed to playing by the rules as we continue our mission to accelerate adoption of this asset class“he added.
**This entry was edited after publication to add Kraken spokesperson’s comments on the Bloomberg report. The source of the initial information is added to the title.
Article by Hannah Estefanía Pérez / DailyBitcoin
Edited image of Unsplash
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