- Kraken announces delisting of USDT and four other stablecoins for European users by March 31.
- Decision stems from compliance requirements with EU’s MiCA regulations.
- PYUSD, EURT, TUSD, and UST will also be removed from the European market.
- Implementation follows a phased approach to minimize market impact.
- Move reflects growing regulatory pressure on stablecoin operations in European markets.
Major cryptocurrency exchange Kraken has announced plans to remove Tether‘s USDT and four other stablecoins from its European offerings, marking a significant shift in the region’s digital asset landscape as platforms adapt to new regulatory requirements.
According to Kraken’s official announcement, the exchange will implement a complete delisting of USDT by March 31, 2024, as part of its compliance strategy with the European Union’s Markets in Crypto-Assets (MiCA) regulation. The affected tokens include Paypal-pyusd-price-index”>PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST).
MiCA, which represents the EU’s comprehensive framework for cryptocurrency regulation, imposes strict requirements on stablecoin issuers operating within the European Economic Area. The regulation aims to enhance investor protection and market stability by establishing clear guidelines for crypto asset service providers.
The phased removal approach adopted by Kraken demonstrates a careful consideration of market dynamics, allowing users adequate time to adjust their positions. This strategic decision reflects the growing trend of cryptocurrency exchanges modifying their services to align with regional regulatory frameworks.
This development follows similar regulatory compliance measures implemented by other major exchanges in Europe, highlighting the increasing sophistication of cryptocurrency market regulation in the region. Stablecoins, which are digital assets designed to maintain a stable value by pegging to traditional currencies, have faced heightened scrutiny from regulators worldwide due to their significant role in crypto market liquidity and potential impact on financial stability.
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