Kraken reaffirms commitment to Tether (USDT) amid EU regulatory concerns

In a rapidly evolving regulatory landscape, Kraken, a prominent US-based cryptocurrency exchange, has firmly stated that it has no plans to delist Tether (USDT) from its European platforms.

This announcement comes in response to Bloomberg reports that Kraken was “actively reviewing” supporting Tether’s USDT stablecoin on its European platform because of the regulatory scrutiny surrounding the use of stablecoins in the European Union (EU).

Kraken clarifies on Tether (USDT) delisting rumours

Mark Greenberg, Kraken’s Global Head of Asset Growth and Management Business, has made it clear that Kraken will continue to support USDT trading in Europe.

In a statement on X, Greenberg asserted, “Kraken continues to list USDT in Europe and we have no plans to delist at this time.” He also added that they know their “European clients value access to USDT” and the exchange will “continue to look at all options to offer USDT under the upcoming regime.”

The statement dispels rumours that Kraken might pull USDT support as the OKX exchange did for its European users.

MiCA regulations why the community fears USDT delisting

The concerns around Tether (USDT) delisting stem from the upcoming Markets in Crypto-Assets (MiCA) regulation in the EU, which seeks to provide a comprehensive legal framework for the cryptocurrency market.

MiCA’s stringent requirements, including the stipulation that stablecoins must maintain daily transaction volumes below 200 million euros, present significant compliance challenges for stablecoin issuers like Tether.

However, despite these impending regulations, the clarification from Kraken’s CEO of the exchange’s commitment to navigating these complexities to ensure continued access to USDT for its European customers serves as an assurance to industry players.

Why Tether matters in the crypto ecosystem

Tether (USDT) has established itself as the world’s largest stablecoin, pegged to the U.S. dollar at a 1:1 ratio.

Over the years, USDT has offered a stable asset that can be used for trading, hedging, and transferring value across different exchanges. Its stability has made it a vital tool for traders and investors seeking to mitigate the volatility typical of other cryptocurrencies.

The stablecoin is currently ranked at position three out of all 9,978 active cryptocurrencies listed on CoinMarketCap, with a market cap of over $111.34 billion.

However, USDT’s widespread use and relative anonymity have also drawn attention from regulatory bodies.

The United Nations Office on Drugs and Crime (UNODC) in a recent publication expressed concerns that Tether could be used for illicit activities, including money laundering. It highlighted the ease with which Tether transactions can be conducted anonymously, making it difficult for authorities to track and identify the parties involved.

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