Kraken, a cryptocurrency exchange based in San Francisco, is reportedly considering withdrawing its support for the stablecoin USDT in the European Union (EU), according to Bloomberg. The exchange is actively reviewing its European support for the Tether-issued stablecoin. European digital asset trade associations and think tanks have raised concerns about the potential ban on the largest stablecoins by trading volume under the EU’s upcoming Markets in Crypto-Assets Regulation (MiCA). MiCA is a legislation set to take effect in December 2024, which aims to provide rules for the supervision, consumer protection, and environmental safeguards of crypto assets. It also includes measures to combat financial crimes such as market manipulation, money laundering, and terrorist financing. USDT, the largest stablecoin by market cap, aims to maintain a 1:1 peg to the US dollar. Marcus Hughes, Kraken’s global head of regulatory strategy, states that their stablecoin offerings are constantly evolving. They are actively reviewing the situation and will make firm decisions based on the clarity of the position. Hughes also acknowledges that the number of stablecoins offered by Kraken in Europe may be reduced.
