Crypto Exchange Kraken Mulls Pulling Support for Top Stablecoin USDT in the EU: Report

The San Francisco-based crypto exchange Kraken is reportedly mulling whether to pull support for the stablecoin USDT in the European Union (EU).

Bloomberg reports that Kraken is “actively reviewing” its European support for the Tether-issued stablecoin.

European digital asset trade associations and think tanks have warned that the EU’s Markets in Crypto-Assets Regulation (MiCA) could ban the largest stablecoins by trading volume.

MiCA is the upcoming EU legislation that will provide rules covering the supervision, consumer protection and environmental safeguards of crypto assets. The law also includes measures that aim to reduce financial crimes including market manipulation, money laundering and terrorist financing. It’s scheduled to take effect in December 2024.

USDT is the largest stablecoin by market cap and aims to maintain a 1:1 peg to the US dollar.

Marcus Hughes, Kraken’s global head of regulatory strategy, tells Bloomberg that their stablecoin offerings are “an evolving picture.”

“We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT. It’s something that we’re actively reviewing, and as the position becomes clearer, we can take firm decisions on that.”

Hughes acknowledges the number of stablecoins that Kraken currently offers in Europe will likely be reduced.

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