An upcoming regime for digital assets that is scheduled to take effect in July, may trigger the removal of United States dollar-pegged stablecoin USDT from the Kraken trading platform.<\/p>\n
Will Kraken Delist Tether USDT From its Platform?<\/strong><\/h2>\nThe top cryptocurrency exchange is allegedly mulling the idea of delisting the stablecoin from its platform in the European Union. In an interview held on Thursday, Kraken\u2019s global head of regulatory strategy Marcus Hughes, confirmed that the decision is currently under review.<\/p>\n
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\n\u201cWe\u2019re absolutely planning for all eventualities, including situations where it\u2019s just not tenable to list specific tokens such as USDT,\u201d Hughes said \u201cIt\u2019s something that we\u2019re actively reviewing, and as the position becomes clearer, we can take firm decisions on that.\u201d<\/p>\n<\/blockquote>\n
The EU showed its commitment to the digital asset sector in its jurisdiction by introducing a cryptocurrency regulatory framework dubbed Market in Capital Assets<\/a> (MiCA).\u00a0 This regulation has been under review for a long while with plans to finally launch in July 2024, just around summer<\/p>\nOrdinarily stablecoins are used by investors who wish to transfer digital assets between exchanges. However, MiCA places restrictions<\/a> on these stablecoins that are offered to investors as they will be supervised by the European Banking Authority (EBA).<\/p>\n<\/p>\n
Together, the EBA and the ESMA, EU\u2019s market regulator have been working on introducing more rules for stablecoins in the form of Regulatory Technical Standards (RTSs).<\/p>\n
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The intense effort towards stablecoin regulation is fueled by the tragic collapse of Terra Luna\u2019s UST in 2022.<\/p>\n
Tether CEO Identifies Discrepancies in MiCA\u00a0<\/strong><\/h2>\nIn response to the situation, Tether noted that its expectation of exchanges is that they \u201crightfully focus on EUR liquidity for European customers, while maintaining USDT as an on-ramp off-ramp solution.\u201d<\/p>\n
Additionally, the USDT issuer highlighted that it\u2019s CEO Paolo Ardoino previously expressed his concerns about certain aspects of the MiCA regulation and its requirements. While Tether has voiced its commitment to reaching a consensus with regulators in different jurisdictions, Ardoino stated that the firm has no plans to be regulated under MiCA\u2019s framework for now.<\/p>\n
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Exchanges like OKX have gone ahead<\/a> of Kraken to phase out USDT on their platform in Europe in preparation for MiCA implementation. Noteworthy, the MiCA regulation will not take effect until 2025.<\/p>\nRead More: Nvidia to Report Q1 Earnings Next Week; Revenue Forecast at $24.65 Billion<\/a><\/strong><\/p>\n<\/p>\n
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\n\n\n\n\n<\/p>\n\nBenjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\n\n ![\"\"](\"https:\/\/secure.gravatar.com\/avatar\/733ca3c15c1fbb2629eeb51edb886efb?s=200&d=mm&r=g\")
\u201cWe\u2019re absolutely planning for all eventualities, including situations where it\u2019s just not tenable to list specific tokens such as USDT,\u201d Hughes said \u201cIt\u2019s something that we\u2019re actively reviewing, and as the position becomes clearer, we can take firm decisions on that.\u201d<\/p>\n<\/blockquote>\n
The EU showed its commitment to the digital asset sector in its jurisdiction by introducing a cryptocurrency regulatory framework dubbed Market in Capital Assets<\/a> (MiCA).\u00a0 This regulation has been under review for a long while with plans to finally launch in July 2024, just around summer<\/p>\n Ordinarily stablecoins are used by investors who wish to transfer digital assets between exchanges. However, MiCA places restrictions<\/a> on these stablecoins that are offered to investors as they will be supervised by the European Banking Authority (EBA).<\/p>\n <\/p>\n Together, the EBA and the ESMA, EU\u2019s market regulator have been working on introducing more rules for stablecoins in the form of Regulatory Technical Standards (RTSs).<\/p>\n <\/p>\n The intense effort towards stablecoin regulation is fueled by the tragic collapse of Terra Luna\u2019s UST in 2022.<\/p>\n In response to the situation, Tether noted that its expectation of exchanges is that they \u201crightfully focus on EUR liquidity for European customers, while maintaining USDT as an on-ramp off-ramp solution.\u201d<\/p>\n Additionally, the USDT issuer highlighted that it\u2019s CEO Paolo Ardoino previously expressed his concerns about certain aspects of the MiCA regulation and its requirements. While Tether has voiced its commitment to reaching a consensus with regulators in different jurisdictions, Ardoino stated that the firm has no plans to be regulated under MiCA\u2019s framework for now.<\/p>\n <\/p>\n Exchanges like OKX have gone ahead<\/a> of Kraken to phase out USDT on their platform in Europe in preparation for MiCA implementation. Noteworthy, the MiCA regulation will not take effect until 2025.<\/p>\n Read More: Nvidia to Report Q1 Earnings Next Week; Revenue Forecast at $24.65 Billion<\/a><\/strong><\/p>\n <\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n <\/p>\n Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\nTether CEO Identifies Discrepancies in MiCA\u00a0<\/strong><\/h2>\n