{"id":828854,"date":"2025-02-22T08:11:37","date_gmt":"2025-02-22T14:11:37","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/22\/kraken-crypto-com-among-exchanges-planning-stablecoin-launches-in-eu\/"},"modified":"2025-02-22T08:11:37","modified_gmt":"2025-02-22T14:11:37","slug":"kraken-crypto-com-among-exchanges-planning-stablecoin-launches-in-eu","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/22\/kraken-crypto-com-among-exchanges-planning-stablecoin-launches-in-eu\/","title":{"rendered":"Kraken, Crypto.com among exchanges planning stablecoin launches in EU"},"content":{"rendered":"
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\"Kraken, Kraken, Crypto.com among exchanges planning stablecoin launches in EU<\/span> Assad Jafri \u00b7<\/span> 3 hours ago<\/span> \u00b7 2 min read<\/span> <\/span> <\/span> <\/span> <\/span><\/p>\n

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Kraken and Crypto.com aim to maintain EU market presence by developing proprietary stablecoins amid MiCA’s stringent regulatory demands.<\/p>\n

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2 min read<\/span><\/p>\n

Updated:<\/span> Feb. 21, 2025 at 11:43 pm UTC<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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\"Kraken,<\/p>\n

Cover art\/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.<\/p>\n<\/div>\n<\/div>\n

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Kraken<\/a> and Crypto.com<\/a> are among crypto exchanges developing their own stablecoins in response to the EU\u2019s new regulatory framework, which is set to tighten oversight on third-party issuers, Bloomberg News reported<\/a> on Feb. 21.<\/p>\n

The move comes as the Markets in Crypto-Assets (MiCA<\/a>) regulation, which took effect in January, introduces stricter compliance measures for stablecoin issuers operating in the European market.<\/p>\n

Under MiCA, all stablecoins \u2014 referred to as \u201ce-money tokens\u201d (EMTs) and \u201casset-referenced tokens\u201d (ARTs) in legal terms \u2014 must obtain authorization<\/a> from an EU-based financial regulator. Issuers must also demonstrate transparency in reserves, maintain stable backing with liquid assets, and comply with stringent consumer protection measures.<\/p>\n

MiCA has already begun reshaping the European stablecoin landscape. Non-compliant stablecoins, including Tether\u2019s<\/a> USDT and PayPal\u2019s<\/a> PYUSD, have been forced off most exchanges<\/a> operating in Europe because they do not meet the new requirements.<\/p>\n

The European Securities and Markets Authority (ESMA) has set a final March 2025 deadline for exchanges to delist all unauthorized stablecoins, further pressuring issuers to either secure compliance or exit the region.<\/p>\n

Kraken and Crypto.com\u2019s response<\/h2>\n

Rather than rely on third-party stablecoin providers that may struggle to meet MiCA\u2019s rules, Kraken and Crypto.com are proactively developing proprietary stablecoins to ensure regulatory compliance and maintain operational stability within the EU.<\/p>\n

Kraken is reportedly planning to launch a US dollar-backed stablecoin through its Irish subsidiary, which would allow it to maintain its European presence without disruption.<\/p>\n

Crypto.com is also developing its own stablecoin, although details about its fiat backing and issuance structure remain undisclosed. The company recently secured a MiCA license from Malta\u2019s financial regulator, enabling it to operate across all European Economic Area (EEA) member states.<\/p>\n

The shift toward in-house stablecoins is a direct response to the tightening regulatory grip on digital assets in Europe. It ensures that exchanges retain control over their liquidity and transactions rather than relying on third-party stablecoin issuers that may face legal uncertainty.<\/p>\n

Scramble to comply<\/h2>\n

MiCA is expected to set a global precedent for stablecoin regulation and will influence policies beyond the EU, including in the US and Asia.<\/p>\n

The framework requires stablecoin issuers to hold fully backed reserves in high-quality liquid assets, provide clear disclosures about redemption mechanisms, and obtain direct authorization from an EU member state.<\/p>\n

The regulation also introduces caps on large-scale stablecoins exceeding \u20ac200 million in daily transactions, aiming to mitigate systemic risks.<\/p>\n

With these requirements in place, many stablecoin issuers are struggling to meet compliance deadlines. While Circle<\/a> has taken steps to align its USDC<\/a> with MiCA, other issuers, including Tether, have yet to finalize regulatory approvals.<\/p>\n

Meanwhile, exchanges are positioning themselves within the new framework. KuCoin recently applied for a MiCA license in Austria, reflecting a broader shift among major platforms toward regulatory alignment.<\/p>\n

Mentioned in this article<\/h6>\n
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\"Blocscale\"<\/a><\/p>\n<\/div>\n

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Read More<\/a>
\n Assad Jafri<\/p>\n","protected":false},"excerpt":{"rendered":"

Kraken, Crypto.com among exchanges planning stablecoin launches in EU Assad Jafri \u00b7 3 hours ago \u00b7 2 min read Kraken and Crypto.com aim to maintain EU market presence by developing proprietary stablecoins amid MiCA’s stringent regulatory demands. 2 min read Updated: Feb. 21, 2025 at 11:43 pm UTC Cover art\/illustration via CryptoSlate. Image includes combined<\/p>\n","protected":false},"author":1,"featured_media":828855,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22791,38717],"tags":[],"class_list":{"0":"post-828854","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-crypto","8":"category-kraken"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/828854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=828854"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/828854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/828855"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=828854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=828854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=828854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}