Kraken ‘Actively Reviewing’ Tether’s Status Under New EU Rules

New regime for digital assets set to take effect in July
Tether says it plans to continue its dialog with regulators

European regulators are in the final stages of outlining technical guidance, which is expected to be fully implemented by the start of 2025.
Photographer: Tiffany Hagler-Geard/Bloomberg

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By Emily Nicolle

May 17, 2024 at 2:30 PM UTC

This article is for subscribers only.

Kraken is “actively reviewing” plans that may include removing support for the world’s most-traded cryptocurrency on its exchange in the European Union, under a new regime for digital assets that’s set to take effect in the bloc in July.

Tether Holdings Ltd.’s USDT, a stablecoin that aims to maintain a one—to-one value with the dollar, is expected to be impacted by upcoming EU rules known as MiCA. The guidance, which has yet to be finalized by the European Banking Authority, will place restrictions on stablecoins offered to investors in the bloc. Stablecoins are mostly used by traders to move digital assets between exchanges, or as a means of storing wealth away from token price volatility.