My Crypto Lawyer
Despite regulatory challenges, Kraken, one of the world’s largest cryptocurrency exchanges, has no plan to delist Tether’s USD stablecoin (USDT).
On May 19, Mark Greenberg, Global Head of Kraken’s Asset Growth & Management Business, communicated the company’s stance in a post on X amid rumors of a possible delisting. Greenberg recognized the demand for USDT from European customers, saying they would “look at all options” to keep it listed.
However, the cryptocurrency executive warned that the company will follow all legal requirements, which have yet to be defined in Europe. Therefore, delisting USDT is still possible in the near future despite Kraken’s desire to keep it.
Delisting speculations started on May 17, following a Bloomberg report stating Kraken was “actively reviewing” Tether’s status under MiCa rules.
Kraken plans to relist delisted cryptocurrencies from Germany
Recently, Kraken announced a new partnership with DLT Finance for its operations in Germany. As a result, the company removed dozens of cryptocurrencies not supported by its new partner, creating uncertainty for the region.
On that note, Mark Greenberg commented in response to a user, stating they plan to “relist some of these assets soon.”
OKX delisted Tether’s USDT in Europe due to upcoming regulation
In March, crypto exchange OKX delisted Tether’s USDT stablecoin for users in the European Union and the European Economic Area (EEA), citing a focus on expanding euro-denominated liquidity in the region. OKX limited spot crypto trading to USDC and euro pairs, while USDT could only be traded against USDC and euro.
Nevertheless, the exchange stated that the decision would only impact a small subset of its user base. Moreover, it had recently expanded its product offering in the EEA by introducing various euro fiat onramps and euro pairs. USDT remained available for EEA-based users to deposit, withdraw, and trade on over-the-counter (OTC) markets.
The move by OKX could be a sign of upcoming regulatory challenges for USDT in the region as the European Union prepares to implement its comprehensive digital asset regulatory framework called MiCA later this year.
In particular, the new rules will require stablecoin issuers to be regulated as electronic money institutions, potentially making many stablecoins currently offered in Europe illegal if they are not authorized and regulated as e-money transmitters. Circle, the issuer behind USDC and EURC, has already taken steps to comply with the upcoming regulations by applying for an electronic money institution license in the E.U.
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