Hey everyone,
Welcome back to Compliant Wednesday with the latest batch of policy updates from our around the world:
- 🇪🇺 Kraken delists USDT and other stablecoins in Europe
- 🇪🇺 Tether criticizes rushed MiCA compliance actions
- 🇫🇷 Binance under investigation for money laundering
- 🇪🇺 EU concerned about US stablecoin dominance
- 🇺🇸 Fed Chair calls for crypto regulatory framework
🇪🇺 Kraken delists USDT and other stablecoins in Europe
Kraken, a cryptocurrency exchange, is delisting Tether’s USDT and four other stablecoins in Europe to comply with new regulations. This move is in response to the European Union’s Markets in Crypto-Assets Regulation (MiCA) and is being implemented gradually to minimize disruptions in the market. Other exchanges, such as Crypto.com, are also taking similar actions to ensure compliance with the new regulations.
Our take: Kraken and others are playing it safe with compliance, making sure they’re toeing the line with MiCA. It’s a tricky transition, but sticking with the rules will help in the long run.
Read more here.
🇪🇺 Tether criticizes rushed MiCA compliance actions
Tether, the operator of the stablecoin USDT, is disappointed with the rushed actions taken by exchanges like Crypto.com to delist USDT and other tokens in Europe due to new regulations under the Markets in Crypto-Assets (MiCA) framework. Tether believes that these changes could create disorder in the European crypto market and pose risks for consumers. They also express concerns about the complexity and new risks introduced by MiCA for EU-licensed stablecoins. Tether is finalizing its European strategy for USDT and aims to comply with the evolving regulations while introducing new technologies.
Our take: Tether’s got a point — sudden changes can rattle the market. On the other hand, regulations are inevitable, so finding an equilibrium is inevitable.
Read more here.
🇫🇷 Binance under investigation for money laundering
French prosecutors are investigating cryptocurrency exchange Binance for possible money laundering and tax fraud between 2019 and 2024. Users have also reported losses due to incorrect communication from the exchange. Binance is facing legal challenges in the US and Australia, and its former CEO has served time in federal prison. Regulatory scrutiny for crypto service providers has intensified in France.
Our take: Binance is facing heat globally. It’s turbulent times, and the exchange is not the only player that needs to address regulatory challenges.
Read more here.
🇪🇺 EU concerned about US stablecoin dominance
The EU is concerned about the dominance of US dollar-pegged stablecoins in the global market. They worry that Trump’s executive order to promote these stablecoins could further strengthen the dollar’s dominance. The European Central Bank is advocating for the development of a digital euro to counterbalance this dominance and maintain access to central bank money. The executive order also prohibits the establishment and use of central bank digital currencies (CBDCs) in the US, which could pose challenges for global CBDC development.
Our take: The EU is strategizing its game plan with a digital euro to stand tall against US financial dominance. It’s a strategic play — let’s see who will be proven right!
Read more here.
🇺🇸 Fed Chair calls for crypto regulatory framework
Federal Reserve Chair Jerome Powell discussed the need for a regulatory framework for cryptocurrencies, emphasizing that banks can serve crypto customers but should manage associated risks. He suggested that Congress should work on establishing a regulatory apparatus for crypto to address potential risks to households. Powell’s comments came after announcing that interest rates would remain unchanged in the United States.
Our take: Powell is nudging towards much-needed clarity in the crypto world. With Congress potentially stepping in, the path to safer crypto environments is slowly coming into view.
Read more here.
And that’s it! What do you think about this week’s news? Let us know in the comments!
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