{"id":166240,"date":"2024-05-17T21:49:58","date_gmt":"2024-05-17T21:49:58","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=166240"},"modified":"2024-05-20T11:03:43","modified_gmt":"2024-05-20T11:03:43","slug":"kraken-considers-delisting-tether-ahead-of-eus-mica-regulations","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/kraken-considers-delisting-tether-ahead-of-eus-mica-regulations\/","title":{"rendered":"Kraken Does Not Consider Delisting Tether Ahead of EU&#8217;s MiCA Regulations"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">Kraken\u2019s Deliberation<\/span><\/strong><span data-preserver-spaces=\"true\">: Kraken clarified that it is not considering the removal of Tether (USDT) from the EU despite the upcoming MiCA regulations, which impose strict rules on stablecoins, which could reduce market diversity.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">MiCA\u2019s Impact<\/span><\/strong><span data-preserver-spaces=\"true\">: The\u00a0MiCA framework\u00a0aims to regulate stablecoin providers with stringent governance and reserve management, limiting large stablecoin transactions to\u00a0200 million euros per day, affecting liquidity and flexibility.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Regulatory Challenges<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">: Tether\u2019s CEO criticizes MiCA for its\u00a060% cash reserve requirement, which could create operational difficulties. The regulations may drive crypto businesses to seek more favorable jurisdictions, risking a fragmented European crypto market.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/kraken-exchange\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Kraken<\/span><\/a><span data-preserver-spaces=\"true\">,\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">a major cryptocurrency exchange, clarified that it is not <\/span><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-05-17\/kraken-actively-reviewing-tether-s-status-under-new-eu-rules\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">contemplating\u00a0<\/span><\/a><span data-preserver-spaces=\"true\">the delisting of Tether (USDT) in the European Union. <\/span><\/strong>Although various sources claimed that the exchange had in its plans to delist USDT from its platform in direct response to the impending Markets in Cryptocurrencies Regulation (MiCA), which will introduce strict rules for stablecoins<span data-preserver-spaces=\"true\">.<\/span><!--more--><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Let&#39;s be clear: <a href=\"https:\/\/twitter.com\/krakenfx?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@krakenfx<\/a> continues to list USDT in Europe and we have no plans to delist at this time.  <\/p>\n<p>We know our European clients value access to USDT and we continue to look at all options to offer USDT under the upcoming regime.  <\/p>\n<p>We will of course follow all legal\u2026<\/p>\n<p>&mdash; Mark Greenberg (@marklg) <a href=\"https:\/\/twitter.com\/marklg\/status\/1791912544216433004?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">May 18, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">The anticipated MiCA framework seeks to introduce a regulatory system for stablecoin providers<\/span><\/strong><span data-preserver-spaces=\"true\">, enforcing enhanced standards for corporate governance and the management of reserves.\u00a0<\/span><strong><span data-preserver-spaces=\"true\">This regulatory shift is poised to notably diminish the diversity of stablecoins<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0available within the European market.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">For larger stablecoins like USDT, transactions will be limited to \u20ac200 million per day, a move that could stifle the liquidity and operational flexibility that these assets currently enjoy.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Kraken\u2019s global head of regulatory strategy,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Marcus Hughes, has stated<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0that the exchange is\u00a0<\/span><strong><em><span data-preserver-spaces=\"true\">\u201cabsolutely planning for all eventualities,\u201d<\/span><\/em><\/strong><span data-preserver-spaces=\"true\">\u00a0including those where it\u2019s not tenable to list specific tokens such as USDT.\u00a0<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The exchange\u2019s proactive stance indicates a readiness to adapt to the new regulatory landscape, albeit with a critical eye on the potential limitations these regulations may impose on the crypto market.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Kraken and Tether: Navigating MiCA\u2019s Regulatory Waters<\/span><\/h2>\n<p style=\"text-align: justify\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-166241\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/KrakenExchange.jpg\" alt=\"Kraken Considers Delisting Tether Ahead of EU's MiCA Regulations\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/KrakenExchange.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/KrakenExchange-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/KrakenExchange-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Tether\u2019s CEO,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Paolo Ardoino, has criticized the European regulation<\/span><\/strong><span data-preserver-spaces=\"true\">, particularly highlighting a requirement that<\/span><strong><span data-preserver-spaces=\"true\">\u00a060% of\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/stablecoins\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">stablecoin\u00a0<\/span><\/a><span data-preserver-spaces=\"true\">reserves be in cash deposits across several banks.\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">Ardoino\u2019s remarks point to the operational hurdles that such regulations could present, especially in a banking environment that is not particularly welcoming to crypto-related businesses.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The MiCA framework, seems to be at odds with the inherent principles of the cryptocurrency ethos: <\/span><strong><span data-preserver-spaces=\"true\">decentralization and unfettered access to a global financial system.\u00a0<\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">The regulations could inadvertently push crypto businesses to seek friendlier jurisdictions<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0or to innovate around the restrictions, potentially leading to a fragmented and less cohesive European crypto market.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">As the European Banking Authority finalizes the technical standards for MiCA, exchanges like Kraken are left to navigate the uncertain waters of compliance. The looming question remains: <strong>How long will it take for new, aggressive regulations to stifle the innovation that crypto brings to users&#8217; finances?<\/strong><\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">MiCA regulations present a serious risk to the crypto industry. As they may restrict the very freedoms that have propelled the industry forward. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">As Kraken reviews its position on USDT, the broader implications for the crypto market in Europe are clear: adapt or face exclusion. The crypto community will be watching closely as Kraken\u2019s decision unfolds, setting a precedent for others in the industry.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR Kraken\u2019s Deliberation: Kraken clarified that it is not considering the removal of Tether (USDT) from the EU despite the upcoming MiCA regulations, which impose strict rules on stablecoins, which could reduce market diversity. MiCA\u2019s Impact: The\u00a0MiCA framework\u00a0aims to regulate stablecoin providers with stringent governance and reserve management, limiting large stablecoin transactions to\u00a0200 million euros &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Kraken Does Not Consider Delisting Tether Ahead of EU&#8217;s MiCA Regulations\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/kraken-considers-delisting-tether-ahead-of-eus-mica-regulations\/#more-166240\" aria-label=\"More on Kraken Does Not Consider Delisting Tether Ahead of EU&#8217;s MiCA Regulations\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":166242,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74,88],"tags":[5437,4685,4742,4844,5030],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166240"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=166240"}],"version-history":[{"count":3,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166240\/revisions"}],"predecessor-version":[{"id":166257,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166240\/revisions\/166257"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/166242"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=166240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=166240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=166240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}