Kraken, Crypto.com among exchanges planning stablecoin launches in EU

15 hours ago

Kraken and Crypto.com are among crypto exchanges processing their ain stablecoins successful effect to the EU’s caller regulatory framework, which is acceptable to tighten oversight connected third-party issuers, Bloomberg News reported connected Feb. 21.

The determination comes arsenic the Markets successful Crypto-Assets (MiCA) regulation, which took effect successful January, introduces stricter compliance measures for stablecoin issuers operating successful the European market.

Under MiCA, each stablecoins — referred to arsenic “e-money tokens” (EMTs) and “asset-referenced tokens” (ARTs) successful ineligible presumption — must get authorization from an EU-based fiscal regulator. Issuers indispensable besides show transparency successful reserves, support unchangeable backing with liquid assets, and comply with stringent user extortion measures.

MiCA has already begun reshaping the European stablecoin landscape. Non-compliant stablecoins, including Tether’s USDT and PayPal’s PYUSD, person been forced disconnected astir exchanges operating successful Europe due to the fact that they bash not conscionable the caller requirements.

The European Securities and Markets Authority (ESMA) has acceptable a last March 2025 deadline for exchanges to delist each unauthorized stablecoins, further pressuring issuers to either unafraid compliance oregon exit the region.

Kraken and Crypto.com’s response

Rather than trust connected third-party stablecoin providers that whitethorn conflict to conscionable MiCA’s rules, Kraken and Crypto.com are proactively processing proprietary stablecoins to guarantee regulatory compliance and support operational stableness wrong the EU.

Kraken is reportedly readying to motorboat a US dollar-backed stablecoin done its Irish subsidiary, which would let it to support its European beingness without disruption.

Crypto.com is besides processing its ain stablecoin, though details astir its fiat backing and issuance operation stay undisclosed. The institution precocious secured a MiCA licence from Malta’s fiscal regulator, enabling it to run crossed each European Economic Area (EEA) subordinate states.

The displacement toward in-house stablecoins is simply a nonstop effect to the tightening regulatory grip connected integer assets successful Europe. It ensures that exchanges clasp power implicit their liquidity and transactions alternatively than relying connected third-party stablecoin issuers that whitethorn look ineligible uncertainty.

Scramble to comply

MiCA is expected to acceptable a planetary precedent for stablecoin regularisation and volition power policies beyond the EU, including successful the US and Asia.

The model requires stablecoin issuers to clasp afloat backed reserves successful high-quality liquid assets, supply wide disclosures astir redemption mechanisms, and get nonstop authorization from an EU subordinate state.

The regularisation besides introduces caps connected large-scale stablecoins exceeding €200 cardinal successful regular transactions, aiming to mitigate systemic risks.

With these requirements successful place, galore stablecoin issuers are struggling to conscionable compliance deadlines. While Circle has taken steps to align its USDC with MiCA, different issuers, including Tether, person yet to finalize regulatory approvals.

Meanwhile, exchanges are positioning themselves wrong the caller framework. KuCoin precocious applied for a MiCA licence successful Austria, reflecting a broader displacement among large platforms toward regulatory alignment.

The station Kraken, Crypto.com among exchanges readying stablecoin launches successful EU appeared archetypal connected CryptoSlate.

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