Kraken, a leading cryptocurrency exchange, has refuted rumors of plans to remove support for Tether (USDT) in Europe. This announcement comes at a time when concerns about the reliability and regulatory compliance of stablecoins, such as Tether, are increasing in the crypto industry. Kraken’s stance on this issue holds significance for the entire crypto ecosystem as regulatory scrutiny intensifies, impacting investor sentiment and market dynamics.
A spokesperson from Kraken has stated that the exchange will continue to support Tether and its associated trading pairs in Europe. They have made it clear that there are no current intentions to delist Tether or make any modifications to their USDT trading pairs.
This declaration contradicts earlier reports suggesting that Kraken was contemplating discontinuing support for Tether’s USDT stablecoin in the EU due to changing regulatory frameworks, specifically the planned Markets in Crypto-Assets (MiCA) law.
In an effort to best serve its European clientele, Kraken has chosen to strategically prioritize EUR liquidity, which may involve withdrawing support for USDT in Europe. Other exchanges, such as OKX, have also taken similar measures in response to legislative changes affecting USDT operations in the EU, aligning with industry trends.
Kraken’s acquisition of TradeStation Crypto, the digital assets division of TradeStation Group under Monex Group, has set the company on a path of regulatory expansion. This strategic move demonstrates Kraken’s commitment to strengthening its position in the US market and adhering to relevant regulations.
A representative from Kraken expressed optimism about the acquisition’s potential to drive further growth and open doors to new product possibilities in the American market.
In other crypto news, spot Bitcoin ETFs have experienced a resurgence as inflows in May offset outflows in April. This development indicates continued interest and investment in Bitcoin-related exchange-traded funds.