The cryptocurrency exchange Kraken has refuted speculations about delisting Tether‘s USDT for European users. Mark Greenberg, Kraken’s Head of Global Asset Growth and Management, addressed these rumors in a social media post on May 18. He explained that Kraken may consider stopping support for USDT in the EU if the stablecoin fails to comply with the upcoming Markets in Crypto-Assets (MiCA) regulations set to be enforced in July.
What Is Planned for Tether?
The forthcoming MiCA regulations aim to provide explicit guidelines for crypto asset developers and service providers, ensuring adherence to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. The announcement has stirred reactions within the crypto community, highlighting USDT’s significant market presence as the largest stablecoin and one of the most traded crypto assets, with a market value exceeding $110 billion, representing around 69% market share.
Despite concerns, Greenberg assured that Kraken intends to continue supporting USDT in Europe. He highlighted the importance of USDT for European customers and mentioned that Kraken is exploring all possibilities to comply with the new regulatory framework. He emphasized that Kraken would follow all legal requirements, even if they disagree with some aspects, while striving to maintain access to USDT for their European clientele.
Notable Statements from a Famous Figure
As MiCA’s regulatory guidelines receive a mixed response from the crypto community, industry leaders like Tether CEO Paolo Ardoino have voiced their concerns. Ardoino stressed the necessity for stablecoin issuers to avoid uninsured cash deposits and advocated for holding 100% reserves in treasury bills to mitigate the risk of bank insolvency.
Ardoino referenced past incidents involving banks and stablecoin projects in the US to highlight the dangers associated with uninsured cash deposits. He emphasized the importance of learning from these events to ensure the future stability and security of stablecoins.
Key Takeaways
• Kraken is committed to supporting USDT in Europe under the new MiCA regulations.
• The MiCA framework aims to ensure compliance with AML and CTF regulations.
• Tether’s market dominance underscores the importance of regulatory clarity.
• Industry leaders urge stablecoin issuers to maintain 100% reserves in treasury bills.
• Learning from past banking incidents is crucial for the stability of stablecoins.
In summary, Kraken’s commitment to following MiCA regulations, despite potential disagreements, aims to ensure continued support for USDT in Europe. The crypto community and industry leaders stress the importance of regulatory clarity and financial prudence to secure the future of stablecoins.