Kraken Considers Delisting Tether Ahead of EU's MiCA Regulations

Major cryptocurrency exchange Kraken is reportedly considering delisting Tether's stablecoin from the European Union ahead of the new measures under the Markets in Crypto-Assets legislation in July. While the finalized version of the new measures is still in development, they are expected to subject USDT to further scrutiny, with regulators arguing that most stablecoins of such kind in circulation have not been approved and regulated. All this uncertainty around the stablecoin has pushed Kraken to gear up for the worst-case scenario.

"We're absolutely planning for all eventualities, including situations where it's just not tenable to list specific tokens such as USDT," Marcus Hughes, Kraken's global head of regulatory strategy, told Bloomberg in an interview. He added that the exchange was preparing for the effects of the new onboard MiCA regulations.

"Kraken is currently assessing the legal status of Tether and considering what it will do when that position is clearer," Hughes said. The publication stated that Tether had told it that it was assuring that it had no such plans to delist USDT or change the trading pairs. However, the stablecoin issuer confirmed it "reassesses its strategies and activities globally to ensure compliance."