Tether finds a way to keep USDT in Europe despite MiCA

Cryptocurrency exchanges are analyzing different alternatives to guarantee the continuity of tether (USDT) operations in the European Union (EU). This is due to the imminent implementation in the region of the new regulations for stablecoins in accordance with the Regulation for the Cryptoasset Market (MiCA Law).

On this topic, it has been said that the exchanges’ plans include the elimination of USDT from their list of crypto assets, a decision that has already been announced by platforms such as OKX. A few days ago the Kraken exchange was cited as the next to eliminate the stablecoin from its offer.

However, the platform’s team made a statement on the issue this week, explaining that continue to actively evaluate all possibilities to maintain the supply of USDT.

Kraken’s global director of asset management and growth, Mark Greenberg, published a message on X this May 18, clarifying that the exchange house will continue to offer USDT to its EU customers. “We have no plans to remove it at this time,” she said.

“We know that our European customers value access to USDT and we continue to analyze all options for offering USDT under the next regime,” added Greenberg, referring to the rules that will come into force next July and which establish – among other requirements – that stablecoin issuers obtain license from a financial regulator in at least one of the EU Member States.

This authorization alone will give operators credentials to serve stablecoin users in the region’s 27-country bloc. The fact mainly affects the operation in Europe of large stablecoins such as USDT and USD Coin (USDC). Although USDC already have a license granted by the authority of France in December 2023.

Given this, Paolo Ardoino, CEO of Tether, said that the company has not yet taken any measures to comply with the regulations. This is why exchanges continue to analyze the existing mechanisms that will allow them continue the stablecoin offer legally in the EU.

We will comply with all legal requirements, even those with which we do not agree. But the rules are not final yet and we continue to do everything we can to continue offering all relevant stablecoins to our European customers.

Mark Greenberg, Global Head of Asset Management and Growth at Kraken.

One possibility being studied is an approach from Tether, according to which exchanges could “legitimately focus on euro liquidity for European customers, while maintaining USDT as a solution.” on-ramp and off-ramp«.

Such a fact would imply using the stablecoin only as a transactional gateway to convert from euro to stablecoin or vice versa, avoiding executing operations in dollars.

In this way, the MiCA requirement that requires any stablecoin project that is not linked to the currencies used in Europe could be met. to stop issuing if its daily transactions exceed 200 million euros. A requirement that seeks to prevent private companies from usurping the role of the euro.

The option of making USDT settlements in euros represents a partial solution to the panorama that is presented in the EU with stablecoins and MiCA.

As CriptoNoticias has reported, Ardoino has said that standards established in MiCA, They are very difficult to fulfill. It questions the strong restrictions established around the way reserves are managed, requiring cash deposits in at least six banking entities.

In this way, it is estimated that the entry into force of MiCA will probably generate a significant drop in the flow of transactions with USDT and other dollar-backed stablecoins in European markets. A measure that the EU is betting on, waiting for trade with euro stablecoins to increase.