Kraken, among the globe’s leading cryptocurrency exchanges, remains steadfast in its decision not to delist Tether’s USD stablecoin (USDT), despite grappling with regulatory hurdles. Mark Greenberg, Global Head of Kraken’s Asset Growth & Management Business, reaffirmed this stance on May 19 in a post on X, amidst swirling rumors of a potential delisting. Greenberg acknowledged the robust demand for USDT among European clientele, affirming their commitment to exploring all avenues to maintain its listing.
While Kraken adamantly maintains its position, Greenberg cautioned that adherence to yet-to-be-defined legal requirements in Europe could necessitate a USDT delisting in the foreseeable future, despite the exchange’s inclination to retain it.
Speculations regarding delisting arose on May 17, spurred by a Bloomberg report indicating Kraken’s active review of Tether’s status under MiCa regulations.
Recently, Kraken unveiled a strategic collaboration with DLT Finance for its German operations. Consequently, the exchange eliminated several cryptocurrencies unsupported by its new partner, sparking uncertainty within the region. In response to a user query, Greenberg expressed intent to relist certain assets in due course.
In March, OKX took the preemptive measure of delisting Tether’s USDT stablecoin for users in the European Union and the European Economic Area (EEA), aiming to bolster euro-denominated liquidity within the region. While OKX restricted spot crypto trading to USDC and euro pairs, USDT transactions were limited to USDC and euro trades. Nonetheless, OKX assured that this decision would affect only a minor segment of its user base, supplementing its product offerings in the EEA with euro fiat onramps and pairs. USDT remained accessible for EEA-based users for deposits, withdrawals, and trading on over-the-counter (OTC) markets.
This move by OKX could signal impending regulatory hurdles for USDT in the region, with the European Union poised to roll out its comprehensive digital asset regulatory framework, MiCA, later this year. Notably, these regulations mandate stablecoin issuers to obtain regulation as electronic money institutions, potentially rendering many stablecoins currently available in Europe illegal if they lack authorization and regulation as e-money transmitters. Circle, the entity behind USDC and EURC, has proactively initiated steps to comply with these forthcoming regulations by seeking an electronic money institution license in the E.U.
