Kraken: Assessing the possibility of delisting Tether! The EU MiCA bill is on the way, may it block USDT?

The European Union has proposed the Crypto Asset Market Law "MiCA" in 2019, which will officially take effect in July this year. It is expected to make the European Union the first jurisdiction in the world to have comprehensive cryptocurrency regulations. district. However, the introduction of this bill will also bring considerable regulatory pressure to the "USD stable currency" in the European market.

According to Bloomberg, Kraken’s exchange in the EU is “actively evaluating” whether to remove support for USDT under the bill.

Kraken: We are preparing for all possibilities and do not rule out delisting USDT

Marcus Hughes, Kraken’s head of global regulatory strategy, said in an interview on Thursday: We will definitely prepare for all possibilities. Plan for situations, including the inability to list specific tokens such as USDT. We are actively reviewing this issue and as the situation becomes clearer, we can make a clear decision.

Although MiCA has not yet been finalized by the European Banking Authority, it requires issuers of electronic currency tokens to obtain a license from a national financial institution in at least one member state by June 30.

Issuers will also be required to meet higher corporate governance, conflicts of interest and reserve management standards, such as at least one-third of funds must be deposited with independent credit institutions, which is expected to have a negative impact on U.S. dollar stablecoins such as Tether. Industry imposes restrictions.

Hughes said: This is still an evolving situation, but we are clear that the types and quantities of stablecoins available in Europe may not continue to be available in the future, and this will largely Depends on which assets are officially registered under the EU’s e-money regime.

In addition, Hughes revealed that Kraken is in the late stages of selecting a location for its post-MiCA European headquarters. France and Ireland have proven to be popular locations, with competitors including Coinbase, Binance, and Gemini already choosing these. place.

According to information on its website, Kraken is currently registered in Italy, Spain, Ireland, Belgium and the Netherlands.

Tether: Continuing Dialogue with Regulators

In response, Tether cited a statement from CEO Paolo Ardoino, in which he expressed concerns about some of MiCA’s requirements and noted that the company Dialogue with regulators will continue. Tether said: They hope that exchanges will correctly focus on providing euro liquidity to European customers, while continuing to use USDT as a medium for funds to enter and exit.

In April, Ardoino mentioned in an interview with the cryptocurrency media "The Big Whale" that Tether has no plans to be regulated according to MiCA rules in the medium term.

OKX delists European USDT trading pairs

As early as mid-March, OKX, the world's top three exchanges, had taken measures to delist most USDT trading pairs, only USDT/EUR and USDT. /USDC is still open. Although OKX did not clearly indicate at the time whether this move was directly related to the upcoming "MiCA", some users revealed that OKX stated in the email that this was in response to regulatory requirements.

Currently on OKX, USDT can still be deposited and withdrawn, and over-the-counter (OTC) transactions are also allowed. Looking ahead, OKX said it will launch more than 30 new euro spot trading pairs.

The new stable currency law in the United States may block Tether

On another continent, U.S. Senators Kirsten Gillibrand and Cynthia Lummis proposed a new stable currency bill "Lummis-Gillibrand Payment Stable Coin Act" at the end of April. Regarding the possible impact of this bill, rating agency S&P Global said that if the bill is finally enacted, it may prompt more banks to enter the stable currency market and affect Tether's dominant position because it is not registered in the United States. the issuing entity.

“Tether is issued by a non-U.S. entity and is therefore not a payments stablecoin permitted under the bill, meaning U.S. users cannot hold or trade Tether, which could reduce demand while boosting U.S.-issued stablecoins. .”

However, S&P Global also stated that Tether trading activities mainly occur in emerging markets outside the United States and are driven by general users and remittances.

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