Kraken and Crypto.com Move to Launch Stablecoins as EU Tightens Regulations

As Europe tightens regulations on stablecoins, major crypto exchanges Kraken and Crypto.com are developing their own digital assets to navigate the new legal landscape.

The EU’s Markets in Crypto-Assets (MiCA) framework, which took effect in January, imposes strict oversight on stablecoin issuers, making compliance essential for continued operations.

MiCA requires stablecoins—now classified as e-money or asset-referenced tokens—to be fully backed by liquid reserves and authorized by an EU regulator. As a result, non-compliant assets like Tether’s USDT and PayPal’s PYUSD have been delisted from many European platforms. By March 2025, exchanges must remove all unauthorized stablecoins, prompting issuers to either adapt or withdraw.

Rather than relying on third-party issuers facing regulatory uncertainty, Kraken and Crypto.com are moving to issue their own compliant stablecoins. Kraken plans to introduce a dollar-backed token through its Irish subsidiary, while Crypto.com—fresh off securing a MiCA license in Malta—is working on a similar project, though specifics remain undisclosed.

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The shift reflects a broader effort to ensure regulatory stability as MiCA reshapes the industry. Some issuers, like Circle, are adjusting to the new framework, while others, including Tether, have yet to secure approvals. Meanwhile, crypto platforms are positioning themselves for compliance, with KuCoin recently applying for a MiCA license in Austria.

As European regulators enforce tighter control, exchanges are taking proactive steps to maintain their foothold in the region, signaling a major shift in how stablecoins will operate under MiCA’s influence.

Alexander Stefanov