Kraken Executive Refutes Claims of USDT Delisting in Europe Amid New Regulations
Mark Greenberg from Kraken denies any plans to delist USDT, emphasising compliance and ongoing support under EU regulations.
MiCA imposes strict requirements on stablecoin issuers, including reserve maintenance and licensing, potentially impacting Kraken’s operations.
According to a report by Bloomberg, crypto exchange Kraken is “actively reviewing” whether they will delist USDT amid questions about Tether’s status under new EU laws. The report claimed that the Market in Crypto-Assets (MiCA) framework – adopted by the European Union and law since June 2023 – would place limitations on the trade of stablecoins.
Timeline of MiCA implementation, source: European Securities and Markets Authority
MiCA, while signed into law, will become enforceable in stages, in parts by 30 June 2024 and December 2024.
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Kraken Denies Delisting, Says USDT Support Ongoing
In a recent post Mark Greenberg, Global Head of Kraken’s Asset Growth & Management Business, refuted a de-listing of USDT.
Greenberg said Kraken’s support for the stablecoin was ongoing, stating, “Let’s be clear: @krakenfx continues to list USDT in Europe and we have no plans to delist at this time.”
He added that USDT is important to European clients and assured that Kraken is exploring all possible options to continue offering USDT under new regulations, but said they wouldn’t look for shortcuts:
We will of course follow all legal requirements, even those we disagree with.
What MiCA Means for Stablecoins
MiCA specifically addresses stablecoins by categorising them as “asset-referenced tokens” and “e-money tokens.”
The regulation imposes strict requirements on issuers of stablecoins, including maintaining adequate reserves, ensuring redemption rights for holders, and adhering to operational and prudential standards to ensure financial stability, consumer protection, and market integrity.
The European Banking Authority (EBA) is responsible for the stablecoin market and issuers must hold a licence from at least one national financial authority in a member state by 30 June.
The Bloomberg article also featured Marcus Hughes, Kraken’s global head of regulatory strategy, who indicated that the company’s plans might involve removing support for USDT in the European Union contrary to Greenberg’s statements.
He said in an interview that it might not be viable to list certain tokens like USDT.
We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT.
Hughes noted that the final decision will depend on clearer regulatory guidelines as they emerge. So, all eyes will be on the EBA over the coming weeks, with the deadline approaching fast.
While the EBA has yet to finalise its market guidance, on 7 May it released a final draft paper regarding technical and regulatory standards relating to MiCA.
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The post Kraken Executive Refutes Claims of USDT Delisting in Europe Amid New Regulations appeared first on Crypto News Australia.
Filed under: Bitcoin - @ May 21, 2024 3:26 am