Kraken and Crypto.com are one of the crypto exchanges that are developing their own stubcoins in response to the new EU regulatory framework set up to enhance surveillance of third-party issuers. This is what Bloomberg News reported on February 21st.
The move comes as the Crypto-Assets (MICA) regulated market, which came into effect in January, introduces stricter compliance measures for Stablecoin publishers operating in the European market.
Under MICA, all stubcoins, known as “electronic money tokens” (EMTs) and “asset reference tokens” (arts), must obtain approval from EU-based financial regulators. Issuers should also show transparency in their reserves, maintain stable support with liquid assets, and comply with strict consumer protection measures.
Mica is already beginning to reconstruct the European Stablecoin landscape. Non-compliant stubcoins, including Tether’s USDT and PayPal’s PYUSD, were forced to replace most of the European operating stubcoins because they did not meet the new requirements.
The European Securities and Markets Agency (ESMA) set a final exchange deadline in March 2025 to eliminate all fraudulent stubcoins, and pressure issuers to ensure compliance or leave the region. I’ll put it on.
Kraken and Crypto.com responses
Rather than relying on third-party Stablecoin providers that may struggle to meet Mica’s rules, Kraken and Crypto.com are independent to ensure regulatory compliance and maintain operational stability within the EU. We are actively developing stub coins.
Kraken is reportedly planning to launch a US dollar-backed Stablecoin through its Irish subsidiary, which will allow it to maintain its European presence without any confusion.
Crypto.com also develops its own Stablecoin, but details of its Fiat’s support and publication structure remain unpublished. The company recently secured a MICA license from Malta’s financial regulators, allowing it to operate in all European Economic Areas (EEA) countries.
The shift to in-house stubcoin is a direct response to the tightening grips of regulations on European digital assets. This will allow the exchange to retain liquidity and trading control, rather than relying on third-party stubcoin issuers who may face legal uncertainty.
Scramble to comply
MICA is expected to set a global precedent for Stablecoin regulations, affecting policies beyond the EU, including the US and Asia.
The framework requires Stablecoin issuers to maintain fully supported reserves on high-quality liquid assets, provide clear disclosures on redemption mechanisms, and obtain approvals directly from EU member states. Masu.
The regulations also introduce caps on large stubcoins over 200 million euros in daily trading, with the aim of reducing systemic risk.
With these requirements in place, many Stablecoin publishers struggle to meet compliance deadlines. Circle has taken steps to align USDC with MICA, but other publishers, including Tether, have yet to finalize regulatory approval.
Meanwhile, the exchange is placing itself within a new framework. Kucoin recently applied for a MICA license in Austria, reflecting a broader shift towards regulatory integrity across key platforms.
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