Topic: Kraken considers dropping USDT in Europe ahead of new regulations (Read 147 times)
I hope that doesn’t happen, I use USDT quite regularly. EU regulations are BS, they are so fearful of cryptocurrency it’s embarrassing. It says a lot about the EU & their pathetic €. They clearly have no confidence in their currency, you can sense the fear by their actions.
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I finally downloaded the app because I was looking for a good centralized exchanges to trade because of the exchanges in the country has stopped or delisted the country p2p from their platforms base on the government directive. And when I download the Kraken exchange app from play store, I registered it and everything went well except the verification process. I was having issues with that stage and I left it for another day to complete that stage.or level, but when I checked it today. It logged me out and I tried to login again but incorrect password.So I got angry and delete the app from the device.
They might launch their CBDCs in the next year, that's why the government are trying to limit and putting pressure to people who're using stablecoins. CBDC's main opponent isn't Bitcoin, but stablecoins, both of them offer the same purpose.
Be careful, if the government publicly announce they restrict or completely ban stablecoins, I expect every stablecoins would be de-pegged since people are scared and they will convert/cash out their stablecoins.
Be careful, if the government publicly announce they restrict or completely ban stablecoins, I expect every stablecoins would be de-pegged since people are scared and they will convert/cash out their stablecoins.
CBDCs are not really a negative thing for fiat because it's pegged by the fiat value unless the government is trying to bring in their own CBDC as you said. Especially after seeing these kind of restrictions which is a red flag for people who hold their crypto in the form of stable coins because all it will take just a day to pop because it's obvious that tether is printing tokens out of thin air so if everyone decides to cashout on the same day I bet they would stall their network and announce their bankruptcy.
I don't know that Kraken is an exchange I just make small research about it and I see that you can buy/sell cryptocurrencies there.
Well that is exactly what an exchange is.Quote
But I don't know if my country currency is listed there trading. And the website looks like decentralized exchange.
What do you mean? Kraken is a centralized exchange and if you look at their website, they will ask you to sign up and there’s the whole KYC process. Which should have told you enough that it is indeed centralized.Quote
And I was trying to register for the app but it only loading for the country page. I will check it out later when works. Since Nigeria is part of the country listed in the registration process then I believe it will be in the p2p trading too.
If your country is included in the choices to register in the platform then maybe the concern is on your side. Maybe low internet connection? Or the device is just loading a lot. 
They might launch their CBDCs in the next year, that's why the government are trying to limit and putting pressure to people who're using stablecoins. CBDC's main opponent isn't Bitcoin, but stablecoins, both of them offer the same purpose.
Be careful, if the government publicly announce they restrict or completely ban stablecoins, I expect every stablecoins would be de-pegged since people are scared and they will convert/cash out their stablecoins.
Be careful, if the government publicly announce they restrict or completely ban stablecoins, I expect every stablecoins would be de-pegged since people are scared and they will convert/cash out their stablecoins.
Update:
Surprise, surprise. There is a U-turn here...
Things are kinda roller coster regarding the new regime of the EU regarding stable coins for the exchanges, but 200 million may not be enough even considering the size of the EU market for sure.
Let's see what they decide and comply with all legal restrictions imposed...
Surprise, surprise. There is a U-turn here...
Things are kinda roller coster regarding the new regime of the EU regarding stable coins for the exchanges, but 200 million may not be enough even considering the size of the EU market for sure.
Let's see what they decide and comply with all legal restrictions imposed...
Even i mostly used USDT instead of native or L2 tokens to did some transactions. Using USDT is very convenient for me considering how low the fees compared by transacting use the native coin like bitcoin or ethereum.
There are certain native coins whose transaction fees or even exchange withdrawal fees are way cheaper than USDT on any chain. Just try withdrawing the likes of Litecoin, dash, XRP and you will be amazed by the withdrawal fees/Exchanges still charge around $0.5 or even $1 for USDT, even on L2 chains. It doesn't make any sense to me if there are cheaper options.
apparently, kraken sees things differently.
from mark greenberg, Global Head of kraken's Asset Growth & Management Business
https://x.com/marklg/status/1791912544216433004
"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, even those we disagree with. But the rules are not finalized yet and we continue to do everything we can to continue to offer all relevant stablecoins to our European customers."
from mark greenberg, Global Head of kraken's Asset Growth & Management Business
https://x.com/marklg/status/1791912544216433004
"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, even those we disagree with. But the rules are not finalized yet and we continue to do everything we can to continue to offer all relevant stablecoins to our European customers."
It can be a boomeraing since USDT was one of biggest stable tokens. I meant the total issued USDT reflected how big the demand achieved by it. The rules related to the crypto is always in the gray area. Nothing concrete about this.
It means if there is still uncertainty in the internal of kraken whether to delist USDT or keep it. It will always be dynamic to follow the regulator. Millions of people are actively using USDT in any platforms.
Even i mostly used USDT instead of native or L2 tokens to did some transactions. Using USDT is very convenient for me considering how low the fees compared by transacting use the native coin like bitcoin or ethereum.
If kraken will decide to drop it from their exchange site. Believe me or not, that will also affect exchange site's income. People are mostly using USDT rather than DAI or even USDC.
apparently, kraken sees things differently.
from mark greenberg, Global Head of kraken's Asset Growth & Management Business
https://x.com/marklg/status/1791912544216433004
"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, even those we disagree with. But the rules are not finalized yet and we continue to do everything we can to continue to offer all relevant stablecoins to our European customers."
from mark greenberg, Global Head of kraken's Asset Growth & Management Business
https://x.com/marklg/status/1791912544216433004
"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, even those we disagree with. But the rules are not finalized yet and we continue to do everything we can to continue to offer all relevant stablecoins to our European customers."
I think this is inline with CBDC. It seems timely that they are going to do this based on the regulation in Europe.
I am not sure if there is one already developed but I have read it before that they are developing a cbdc for their region. So, if they are going to drop their support in Europe, such policies really affects them with that. And this might create a domino impact globally.
I am not sure if there is one already developed but I have read it before that they are developing a cbdc for their region. So, if they are going to drop their support in Europe, such policies really affects them with that. And this might create a domino impact globally.
So crypto markets are getting hit with new laws frequently. Kraken is considering to drop USDT. Will other major exchanges follow same path? If they follow, it will be unfortunate but they also have to comply to rules and regulation for their well being or get closed.
I still don't know why the regulation of cryptocurrency is becoming more severe. Actually this does not make a good sense to me but I think the exchange has to option than to bowndow to the pressure a s if not they would have to leave.
Only I which the government would understand the consequences of making severe regulations for cryptocurrencies that would have been a means of making more money from them especially when it comes to task.
Only I which the government would understand the consequences of making severe regulations for cryptocurrencies that would have been a means of making more money from them especially when it comes to task.
If USDT is no longer available, investors would be forced to find alternative stablecoins so that would be one of the aftermath of this decision. It is not like they can force the regulators to change their decision. The best thing we all can do is comply and compromise. It’s just a shame because I know many investors use USDT.
The law of the government rules over the land they are ruling. UK is known for its banking and it is one of their major industries. To prevent money laundering which is quite common using USDT they implementing tough regulations and eventually they will come up with their own version of stablecoin that will be pegged to pound. I reckon some sort of CBDC to track illegal financial transactions using blockchain technology. This is just the beginning and slowly most European countries will follow the same path.
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will this affect USDT in anyway?
will this affect USDT in anyway?
I believe it will affect the daily volume of the coin, but not much beyond that. After all, much of the volume of USDT apparently comes from other markets, where people do not have regular access to United State Dollars and Euros, it comes to my mind inflationary countries like Argentina, Venezuela and Zimbabwe, there having USDT is more valuable than in any country within Europe, where their currency (the euro) is stable enough for citizens there not to count on USDT.
Anyways, even if this new regulation does not directly affect USDT as much as one could assume at first glance, we still need to consider who USDT could behave in the future and what is the risk it poses to holders in the long run.
Let us not forget these stablecoins are direct competitors to CBDCs and the money minted by sovereign states, after all, many centralized systems and administrations would benefit of USDT downfall...
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OKX already did this in the past for EU and now Kraken which means this is the new beginning for the stablecoins? Those two strict limitations force the USDT to be used very limited considering it's market cap value which is over 100 Bn, will this affect USDT in anyway?
OKX already did this in the past for EU and now Kraken which means this is the new beginning for the stablecoins? Those two strict limitations force the USDT to be used very limited considering it's market cap value which is over 100 Bn, will this affect USDT in anyway?
CBDCs are coming. However, since it's just for EU markets, I won't bother much about it. Compared to other exchanges, Kraken is a relatively smaller exchange (no longer a top tier exchange) so the impact will be subtle. If Binance and other mainstream exchanges like Bitget, Bybit adopts the rule too, then I'd be very worried. Kraken has always been an exchange that complies with government rules and policies 100% so I'm not surprised they'd be making a move like this.
TLDR: Business as usual. Unless Binance, Bybit, Bitget follows suit and drop USDT pairs.
We all know where this is headed. They are trying to pave way for their Government controlled CBDCs. By putting USDT and other stablecoins out of the equation, people will have no choice but rush to use CBDCs
Like ETH/BTC, SOL/BTC, XMR/BTC, ZEC/BTC etc
If USDT is no longer available, investors would be forced to find alternative stablecoins so that would be one of the aftermath of this decision.
Or people could just go back to using certain trading pairs like in the past where Bitcoin was the base currencyLike ETH/BTC, SOL/BTC, XMR/BTC, ZEC/BTC etc
I don't know that Kraken is an exchange I just make small research about it and I see that you can buy/sell cryptocurrencies there. But I don't know if my country currency is listed there trading. And the website looks like decentralized exchange. And I was trying to register for the app but it only loading for the country page. I will check it out later when works. Since Nigeria is part of the country listed in the registration process then I believe it will be in the p2p trading too.
I'm confused on what your post has to do with the topic? Kraken isn't a decentralized exchange.
If USDT is no longer available, investors would be forced to find alternative stablecoins so that would be one of the aftermath of this decision. It is not like they can force the regulators to change their decision. The best thing we all can do is comply and compromise. It’s just a shame because I know many investors use USDT.
I am one of the people who believe that these stable currencies are against the concept of cryptocurrencies and blockchain in general. Therefore, I believe that the purpose of these developments is not primarily to support crypto culture, but rather to lead the field to greater centralization.
As a reminder, there are stable and completely decentralized cryptocurrencies, such as Dai, and of course they are not supported in the same way.
In general, we hope that this update will serve European users more than serving censorship institutions.
I don't know that Kraken is an exchange I just make small research about it and I see that you can buy/sell cryptocurrencies there. But I don't know if my country currency is listed there trading. And the website looks like decentralized exchange. And I was trying to register for the app but it only loading for the country page. I will check it out later when works. Since Nigeria is part of the country listed in the registration process then I believe it will be in the p2p trading too.
If USDT is no longer available, investors would be forced to find alternative stablecoins so that would be one of the aftermath of this decision. It is not like they can force the regulators to change their decision. The best thing we all can do is comply and compromise. It’s just a shame because I know many investors use USDT.
2 exchanges already, that's great for they are consistent with what they are doing.
MICA is creating a pain in the ass for these exchanges with these limits and they are asking 60% reserve requirement while their bank doesn't even allow businesses related to crypto.
if they are doing all these, they should just have their own Euro stablecoin. and drastically change the bank laws. it seems to be like a good route to start printing Euro in blockchain.
Eventually having their own stable coin will be their ultimate motive but for now they are just trying to keep the crypto platforms access to their citizen in the limited range and so they can put a pedal on the adoption for a while. Well, usually US will be the one will come up with these specific restrictions and now EU is coming ahead which is surprising and they have the same amount of influence to make the service platforms to comply their frameworks like US does?...
It seems they have been lossing lately from the crypto dealers or buy purchasing crypto directly without having to deal with banks for the government to take they so called taxes or commission in each transactions and the MiCAs are charged with responsibility to put that into order for the EU to make profit frequently from crypto dealers.
The more the regulations, the more exchanges will begin loss interest in USDT in the Europe because they are wanting to punish people with their inhumane regulations.
The more the regulations, the more exchanges will begin loss interest in USDT in the Europe because they are wanting to punish people with their inhumane regulations.
2 exchanges already, that's great for they are consistent with what they are doing.
MICA is creating a pain in the ass for these exchanges with these limits and they are asking 60% reserve requirement while their bank doesn't even allow businesses related to crypto.
if they are doing all these, they should just have their own Euro stablecoin. and drastically change the bank laws. it seems to be like a good route to start printing Euro in blockchain.
With new regulations in Europe set to enforce strict limits on transactions and reserve requirements, Kraken is assessing its stablecoin listings.
Kraken is “actively reviewing” plans to comply with the upcoming MiCA framework. The regulation will be applied in two phases: rules applicable to stablecoins (asset-referenced, or ARTs, and e-money tokens, or EMTs) will come into force on June 30, 2024, while rules applicable to crypto service providers will take effect on Dec. 30, 2024.
transactions are limited to 200 million euros per day and 60% of stablecoin reserves be in cash deposits across several banks
Kraken considers dropping USDT in Europe ahead of new regulations
OKX already did this in the past for EU and now Kraken which means this is the new beginning for the stablecoins? Those two strict limitations force the USDT to be used very limited considering it's market cap value which is over 100 Bn, will this affect USDT in anyway?
Kraken is “actively reviewing” plans to comply with the upcoming MiCA framework. The regulation will be applied in two phases: rules applicable to stablecoins (asset-referenced, or ARTs, and e-money tokens, or EMTs) will come into force on June 30, 2024, while rules applicable to crypto service providers will take effect on Dec. 30, 2024.
transactions are limited to 200 million euros per day and 60% of stablecoin reserves be in cash deposits across several banks
Kraken considers dropping USDT in Europe ahead of new regulations
OKX already did this in the past for EU and now Kraken which means this is the new beginning for the stablecoins? Those two strict limitations force the USDT to be used very limited considering it's market cap value which is over 100 Bn, will this affect USDT in anyway?
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