Kraken denies plans to remove Tether in Europe

Kraken, a prominent cryptocurrency exchange, has issued a final statement denying that they plan to delist Tether (USDT) in Europe. This announcement comes amid growing concerns within the crypto community about the stability and regulatory compliance of widely used stablecoins such as Tether. As regulatory pressure mounts, Kraken’s stance on this matter matters to the broader cryptocurrency ecosystem, impacting investor sentiment and market dynamics.

Kraken’s stance on Tether in Europe

In recent findings, a Kraken representative confirmed the exchange’s commitment to maintaining support for Tether and its trading pairs in Europe. The exchange clarified that there are currently no plans to delist Tether or make any changes to the USDT trading pairs.

This statement contrasts with previous reports that indicated Kraken was considering ending support for Tether’s USDT stablecoin in the European Union due to changing regulatory frameworks, most notably the proposed Markets in Crypto-Assets (MiCA) legislation.

The decision to potentially withdraw support for USDT in Europe reflects Kraken’s strategic priority for EUR liquidity to better meet the needs of its European customers. This development is in line with broader industry trends, as evidenced by similar actions by other exchanges, such as OKX, in response to regulatory changes affecting the functionality of USDT in the EU.

Kraken’s regulatory expansion and legal challenges

Kraken has embarked on a journey of regulatory expansion with the acquisition of TradeStation Crypto, the digital asset arm of TradeStation Group under Monex Group. This strategic move highlights Kraken’s commitment to strengthening its regulatory and market position in the United States.

A Kraken spokesperson expressed optimism about the acquisition’s potential to drive further growth and unlock new product opportunities within the US market. Meanwhile, tensions between Kraken and the U.S. Securities and Exchange Commission (SEC) have escalated, as evidenced by Kraken’s filing of a response challenging the SEC’s lawsuit.

In her rebuttal, Kraken highlights the shortcomings of the SEC’s case, indicating a determined stance in defending its regulatory compliance and operational integrity. This legal dispute not only underlines the complexity of regulatory oversight within the crypto industry, but also reflects the broader implications for market participants and the regulatory landscape as a whole.