Kraken confirmed that it will maintain support for Tether’s USDT stablecoin in Europe, addressing rumors and highlighting ongoing efforts to comply with new regulatory standards.
Kraken has dispelled rumors about delisting Tether’s USDT stablecoin for its European users. The crypto exchange's Global Head of Asset Growth and Management, Mark Greenberg, clarified this in a May 18 post on X (formerly Twitter). He emphasized that USDT remains a crucial asset for European clients and confirmed Kraken’s commitment to supporting it.
Speculation had arisen that Kraken might cease support for USDT in the European Union if the stablecoin failed to comply with the upcoming Markets in Crypto-Assets (MiCA) regulations, which are set to take effect in July. These regulations aim to provide clear guidelines for crypto asset developers and service providers, ensuring compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) standards.
Greenberg addressed these concerns, asserting that Kraken is exploring all options to continue offering USDT under the new regulatory regime. He reiterated Kraken’s dedication to following all legal requirements, even those they may disagree with, while the MiCA rules are still being finalized.
The crypto community has responded positively to MiCA’s regulatory clarity, though industry figures like Tether CEO Paolo Ardoino have voiced some reservations. Ardoino emphasized the importance of stablecoin issuers avoiding uninsured cash deposits, advocating instead for maintaining 100% reserves in treasury bills to mitigate risks associated with bank failures.
Ardoino also highlighted past incidents involving banks and stablecoins in the US as cautionary examples. He stressed the need to learn from these events to ensure the stability and security of stablecoins in the future.
