Kraken Reaffirms Commitment to Tether’s USDT Stablecoin in Europe

Cryptocurrency exchange Kraken has reassured its users that it has no plans to delist the Tether (USDT) stablecoin in Europe, despite recent reports suggesting otherwise. The announcement was made by Mark Greenberg, Kraken’s global head of asset growth and management, via social media.

Greenberg addressed concerns stemming from a report that indicated Kraken was “actively reviewing” the potential delisting of USDT from the European market. He emphasized that European clients highly value access to USDT and that Kraken is committed to continuing to offer the stablecoin under the forthcoming regulatory framework.

“Let’s be clear: @krakenfx continues to list USDT in Europe and we have no plans to delist at this time. We know our European clients value access to USDT and we continue to look at all options to offer USDT under the upcoming regime. We will, of course, follow all legal requirements,” Greenberg stated in his announcement.

The European Union’s Markets in Crypto Assets (MiCA) regulation, which is set to take effect later this year, has been a focal point for the cryptocurrency industry. The new regulations will place a significant emphasis on stablecoins, which are crypto assets designed to maintain a stable value against traditional currencies.

In addition to the regulatory landscape in Europe, Kraken has been navigating legal challenges in the United States. In November 2023, the Securities and Exchange Commission (SEC) filed a lawsuit against Kraken, alleging that it had been operating an unregistered securities trading platform. This legal action followed a previous settlement over Kraken’s former staking service. Kraken has since escalated its defense, urging the court to dismiss the SEC’s claims to prevent a “significant reordering” of the US financial regulatory structure.

The debate over the safety and stability of different stablecoins, particularly Tether’s USDT and USD Coin (USDC), continues to be a topic of discussion. As of April 2024, USDT’s market capitalization stood at $104 billion, significantly higher than USDC’s $32 billion. This disparity is partly attributed to the network effect, with USDT having been launched in 2014, giving it a longer presence in the market.

Kraken’s reaffirmation of its commitment to USDT in Europe comes as a relief to many of its users who rely on the stablecoin for various transactions and investments. The exchange’s proactive stance in addressing regulatory changes and legal challenges underscores its dedication to maintaining a robust and compliant trading platform for its global user base.

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