Kraken, a cryptocurrency exchange, is currently considering its options to meet the requirements of the upcoming MiCA law in the European Union. This law, known as the Markets in Crypto-Assets Regulation, will be implemented in two stages, with regulations for stablecoins and e-money tokens coming into effect on June 30, 2024, and regulations for crypto service providers on December 30, 2024. Kraken is actively reviewing strategies to comply with this framework.
In response to Kraken’s actions, Tether, a popular stablecoin, has suggested that exchanges prioritize EUR liquidity for European users and use USDT as a solution for on-ramping and off-ramping. The European Banking Authority has criteria in place to determine whether asset-referenced tokens (ARTs) or e-money tokens (EMTs) qualify as stablecoins. Transactions involving larger stablecoins, like USDT, will be subject to a daily cap of 200 million euros.
Paolo Ardoino, the CEO of Tether, has expressed his opposition to the MiCA law, stating that his company has no intention of complying with it. Ardoino specifically highlighted the requirement for institutions to hold 60% of stablecoin reserves in cash as a concern.
In other news, Tether has recently minted $1 billion worth of USDT, increasing its market capitalization to over $110 billion.