Kraken Firm on Keeping USDT in Europe Amid Regulatory Uncertainty

May 20, 2024

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Despite recent speculation, cryptocurrency exchange Kraken has affirmed its stance on continuing to list Tether (USDT) in Europe. Contrary to reports suggesting the exchange was reconsidering its position to comply with upcoming regulations, the firm has made it clear that delisting USDT is not on the agenda.

Mark Greenberg, Kraken’s global head of asset growth and management, stated on May 18 via X (formerly Twitter), “[Kraken] continues to list USDT in Europe, and we have no plans to delist at this time.”

Kraken ‘Actively Reviewing’ Strategy

This assertion comes in response to a May 17 Bloomberg article that claimed Kraken was “actively reviewing” its strategy to align with the European Union’s forthcoming Markets in Crypto Assets Regulation (MiCA).

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Greenberg emphasized Kraken’s commitment to adhering to all legal requirements, even those the company may not fully agree with.

He noted, “But the rules are not finalized yet and we continue to do everything we can to continue to offer all relevant stablecoins to our European customers.” His comments suggest that Kraken is prepared to navigate the complexities of the evolving regulatory landscape while maintaining its stablecoin offerings.

MiCA Framework

The MiCA framework, which will significantly impact stablecoin regulation, is set to come into effect on June 30. This will be followed by broader cryptocurrency service provider rules for European firms on December 30.

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Kraken’s global head of regulatory strategy, Marcus Hughes, highlighted the company’s proactive approach, stating,

“We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT. It’s something that we’re actively reviewing, and as the position becomes clearer, we can take firm decisions on that.”

Kraken Secures Win Over Competitors

Kraken contrasts sharply with some of its major competitors when it comes to Tether USD. OKX delisted USDT in Europe in March, and Binance announced similar intentions last September, although it has yet to follow through.

While Kraken recently ceased support for the privacy token Monero (XMR) in Belgium and Ireland as of April, it continues to expand its European footprint. The exchange has secured a virtual asset service provider registration in Spain and the Netherlands, and an electronic money institution license in Ireland, demonstrating its commitment to growth and regulatory compliance in the region.

As the regulatory environment for cryptocurrencies continues to evolve, Kraken’s steadfastness in keeping USDT available to its European users highlights its dedication to providing a broad array of crypto assets while adhering to legal standards.