Kraken, a leading cryptocurrency exchange, has put to rest rumors about delisting Tether's USDT for European users. Mark Greenberg, Head of Global Asset Growth and Management at Kraken, clarified the situation in a recent post. While Kraken may consider halting support for USDT in the EU if it fails to comply with the upcoming Markets in Crypto-Assets (MiCA) regulations, there are no plans to delist USDT entirely.

The MiCA regulations, set to take effect in July, aim to provide clear guidelines for crypto asset developers and service providers, ensuring compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. The news has sparked reactions within the crypto community, given USDT's significant market value of over $110 billion, representing 69% market share.

Greenberg addressed concerns by stating that Kraken plans to continue supporting USDT in Europe, emphasizing its value for European customers. Kraken is exploring all options to offer USDT under the new regulatory regime, ensuring compliance with legal requirements. However, the rules are not yet finalized, and Kraken is working to continue offering relevant stablecoin projects to European customers.

Tether CEO Paolo Ardoino has expressed reservations about the MiCA regulations, highlighting the importance of stablecoin issuers avoiding uninsured cash deposits. Instead, he advocates for holding 100% reserves in treasury bills to reduce the risk of bank insolvency. Ardoino points to past events involving banks and stablecoin projects in the US as examples of the risks associated with uninsured cash deposits, emphasizing the need to learn from these events to ensure the stability and security of stablecoins in the future.