EU crypto regulation MiCA to take effect soon, Kraken considering delisting USDT?

According to a report from Bloomberg, cryptocurrency exchange Kraken is actively reviewing and considering whether to delist Tether's stablecoin USDT from the European market.

MiCA About to Take Effect, OKX First to Delist USDT

This move is in response to the stablecoin regulations within the Markets in Crypto-Assets Regulation (MiCA). The regulation stipulates that only Electronic Money Institutions (EMIs) and credit institutions are allowed to issue stablecoins. According to previous reports, the law is set to take effect by the end of this year, with the stablecoin rules expected to be implemented by June.

Cryptocurrency exchange OKX had already ceased support for the majority of trading pairs involving Tether's USD stablecoin (USDT) in the EU and European Economic Area (EEA) back in March.

EU's crypto legislation MiCA makes an impact! OKX delists USDT trading pairs in the European region, with Circle taking the lead?

Kraken Actively Assessing All Possibilities

According to Bloomberg, Kraken is also actively evaluating whether to cease its support for Tether on its European platform once MiCA approval is obtained.

However, amidst the escalating reports, Marcus Hughes, Kraken's Global Head of Regulatory Affairs, denied any plans for delisting on the X platform:

We are aware that our European clients value using USDT, and Kraken will continue to consider all options for providing USDT under the upcoming regulations. We will, of course, comply with all legal requirements, even those we disagree with. As the rules have not been finalized, we will continue to make every effort to offer all relevant stablecoins to our European clients.

Circle Leading in Europe

According to CoinMarketCap data, the total supply of USDT is $111.4 billion, accounting for 69% of the total stablecoin market value of $160.8 billion, while the second-ranking USDC stands at $35.3 billion, representing 21%.

However, in the case of explicit legislation and regulatory implementation in the EU, compliance-focused Circle seems to have a competitive advantage. In December last year, USDC issuer Circle received conditional registration from the French Financial Markets Authority (AMF) for its digital asset services provider DASP, and subsequently applied for an EMI license.

Circle Secures Conditional Registration from French Digital Asset Services Provider DASP, Strengthening Compliance Development in Europe