Kraken considers dropping USDT in Europe ahead of new regulations

With new regulations in Europe set to enforce strict limits on transactions and reserve requirements, Kraken is assessing its stablecoin listings.

Crypto exchange Kraken is considering removing support for stablecoin Tether (USDT) in the European Union as the Markets in Crypto-Assets Regulation (MiCA) is set to take effect.

According to a Bloomberg report on May 17, Kraken is “actively reviewing” plans to comply with the upcoming MiCA framework. The regulation will be applied in two phases: rules applicable to stablecoins (asset-referenced, or ARTs, and e-money tokens, or EMTs) will come into force on June 30, 2024, while rules applicable to crypto service providers will take effect on Dec. 30, 2024.

“We‘re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT,” said Marcus Hughes, Kraken‘s global head of regulatory strategy. “It’s something that were actively reviewing, and as the position becomes clearer, we can take firm decisions on that.”