The crypto sector is experiencing rapid growth, attracting more and more investors. However, regulation is required, hence the EU MiCA legal framework coming into force from 2024. Faced with these new rules, Kraken is seriously considering removing the stablecoin Tether (USDT) from its European offering.
Kraken, spearheading crypto compliance
In anticipation of the new MiCA regulations, Kraken recently revealed that it is seriously considering removing the stablecoin Tether (USDT) from its European offering. Far from being a trivial decision, this major change illustrates the platform's resolute desire to anticipate future regulatory obligations now.
“We are absolutely preparing for all eventualities,” insisted a spokesperson, highlighting a pragmatic and proactive approach, far from the defensive postures of certain crypto players calling into question the legitimacy of MiCA.
A major challenge for stablecoins
At the heart of Kraken's concerns: MiCA's drastic new rules specifically concerning stablecoins considered “significant” by European regulators. This is particularly the case for the USDT token issued by Tether, which has a market capitalization exceeding $80 billion. For these large stable cryptos, the European text provides for a severe cap on daily transactions of 200 million euros. A restrictive framework that could seriously hamper their widespread use as an access ramp to crypto.
But that's not all ! The new regulations would also require issuers to reserve at least 60% of their reserves in the form of traditional bank deposits. A complex obligation according to Paolo Ardoino, the boss of Tether, who points out the difficulty finding willing banks to accept this type of crypto activity.
Beyond the specific case of Kraken, this wave of regulatory adjustments in the crypto ecosystem seems far from being an epiphenomenon. As early as last March, the competing platform OKX also suspended USDT trading for the European economic zone, in anticipation of the entry into force of MiCA.
The regulatory compliance headache for crypto players is very real today, especially for heavyweights such as Kraken. However, rather than suffering it as a constraint, some decide to anticipate this new regulated era to better embrace it.
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