Kraken executive Mark Greenberg recently denied the exchange’s plans to delist Tether’s USDT stablecoin in Europe on May 18. He mentioned that the company is exploring all options to offer USDT under the upcoming regulatory regime. Greenberg emphasized the importance of following legal requirements, even those that Kraken may not align with, noting that the rules have yet to be finalized. Additionally, Kraken’s plans to maintain its offerings extend beyond USDT, as Greenberg stated they are striving to offer all relevant stablecoins to their European customers.
Although Greenberg did not specify the regulations in question, it is believed that the EU’s Markets in Crypto-Assets (MiCA) framework, which will come into effect in July, is a key factor. MiCA mandates that fiat-backed stablecoin issuers register as electronic money institutions (EMIs) and meet various criteria to operate legally within the region. Furthermore, Kraken is reportedly working to relist certain coins that were previously delisted in Germany, although the specific coins were not disclosed.
The situation became more complex when Bloomberg suggested on May 17 that Kraken might delist USDT in the EU based on statements from Kraken’s Global Head of Regulatory Strategy, Marcus Hughes. Hughes expressed concerns about the feasibility of listing specific tokens such as USDT in the EU under the new regulatory framework. He also cautioned that MiCA could lead to a reduction in the variety of stablecoins available in the European market. However, shortly after Bloomberg’s report, a Kraken spokesperson refuted any plans to delist or make changes to USDT trading pairs, emphasizing the company’s ongoing assessment of its global compliance strategy.
Despite the uncertainties surrounding Kraken’s stance on USDT in Europe, USDT issuer Tether remains optimistic that EU exchanges will continue to support USDT trading pairs amidst regulatory shifts. In contrast, OKX has taken a different approach by delisting USDT in Europe but opting to maintain the listing of USDC. The evolving regulatory landscape and varying responses from exchanges highlight the challenges and complexities faced by cryptocurrency platforms as they navigate compliance requirements and market demands.
The conflicting statements and actions from Kraken, coupled with the broader implications of regulatory changes in the EU, underscore the importance of adaptability and strategic planning for cryptocurrency exchanges. As the industry continues to evolve, maintaining a balance between compliance and market competitiveness will be crucial for long-term sustainability and growth.
