As a researcher with experience in digital asset regulations, I believe that Kraken’s decision to delist USDT from its European Union platform is a likely outcome given the impending regulatory framework, MiCA. The EU’s commitment to regulating stablecoins under MiCA has been a topic of intense discussion within the crypto community, and the upcoming regulation places restrictions on these assets that may not be tenable for some exchanges or stablecoin issuers.
Starting in July, a new regulatory framework for digital assets could lead to USDT (United States dollar-pegged stablecoin) being delisted from the Kraken exchange.
Will Kraken Delist Tether USDT From its Platform?
In Europe, the leading cryptocurrency trading platform is reportedly considering removing a stablecoin from its service. During a Thursday interview, Marcus Hughes, Kraken’s global head of regulatory strategy, acknowledged that this potential action is being deliberated upon.
Hughes acknowledged that they’re thoroughly preparing for various scenarios, even those where it’s impractical to enumerate specific tokens like USDT. As clarity emerges, decisive actions will be taken.
As a crypto investor, I’m excited about the European Union’s dedication to regulating the digital asset sector within its borders. The upcoming regulatory framework, known as MiCA or Markets in Crypto-Assets, is a significant step forward. This regulation has been in the works for some time now and is anticipated to go live in July 2024 – right around summertime.
As a crypto investor, I’ve often utilized stablecoins for seamlessly transferring my digital assets between various exchanges. However, it’s essential to note that MiCA, or the Markets in Crypto-Assets Regulation, brings new regulations to the table. These stablecoins that we’ve been using will now be subjected to EBA (European Banking Authority) supervision. This means investors like us might face some adjustments in how we utilize these stablecoins within the European Union.
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA), two European Union regulatory bodies, have collaborated to propose new regulations for stablecoins. Specifically, they are developing Regulatory Technical Standards (RTSs) to enhance the regulatory framework surrounding these digital assets.
The significant push for stablecoin regulations stems from the disappointing demise of Terra Luna’s UST in the year 2022.
Tether CEO Identifies Discrepancies in MiCA
In reaction to the current situation, Tether expressed its belief that exchanges should prioritize providing sufficient Euro liquidity for European users, while maintaining USDT as a convenient on-ramp and off-ramp solution.
The CEO of Tether, Paolo Ardoin, previously raised concerns about certain elements of the MiCA regulation and its conditions. Despite Tether’s pledge to work with regulators in various regions, Ardoino announced that the company currently intends to avoid being governed by MiCA’s regulatory framework.
As a crypto investor, I’ve noticed that OKX has taken the lead over Kraken by planning to discontinue Tether (USDT) usage on their European platform in anticipation of MiCA regulations. It’s important to mention that the MiCA legislation isn’t set to be enforced until 2025.
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2024-05-17 20:28