(Bloomberg) -- Kraken is “actively reviewing” plans that may include removing support for the world’s most-traded cryptocurrency on its exchange in the European Union, under a new regime for digital assets that’s set to take effect in the bloc in July.

Tether Holdings Ltd.’s USDT, a stablecoin that aims to maintain a one—to-one value with the dollar, is expected to be impacted by upcoming EU rules known as MiCA. The guidance, which has yet to be finalized by the European Banking Authority, will place restrictions on stablecoins offered to investors in the bloc. Stablecoins are mostly used by traders to move digital assets between exchanges, or as a means of storing wealth away from token price volatility.

“We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT,” Marcus Hughes, Kraken’s global head of regulatory strategy, said in an interview on Thursday. “It’s something that we’re actively reviewing, and as the position becomes clearer, we can take firm decisions on that.”

In response to a request for comment on Kraken’s remarks, Tether said the firm expects exchanges to “rightfully focus on EUR liquidity for European customers, while maintaining USDT as an on-ramp off-ramp solution.”

Tether also pointed to a statement in which its chief executive officer, Paolo Ardoino, expressed concerns about some aspects of MiCA’s requirements and said the company will continue its dialog with regulators. Tether has no plans to be regulated under MiCA rules in the medium term, Ardoino previously told crypto publication The Big Whale in April. 

One of the world’s largest crypto exchanges, OKX, already took steps to alter trading support for USDT in the EU earlier this year, removing the ability to use the stablecoin for buying or selling other cryptoassets. European users can still deposit or withdraw their USDT holdings, conduct over-the-counter transactions and exchange it for euros.

Read More: Crypto Exchange OKX to Pull Tether Trading Pairs in Europe

European regulators are in the final stages of outlining technical guidance for MiCA, which is expected to be implemented in full by the start of 2025. The EBA was tasked with overseeing the bloc’s rules on stablecoins, which are set to require issuers of asset-referenced and e-money tokens to hold a license from a national financial authority in at least one member state by June 30. Issuers will also be mandated to meet higher standards on corporate governance, conflicts of interest and reserve management, such as holding at least a third of all funds at an independent credit institution.

“It’s an evolving picture. What we’re clear on is that the scope of the type and number of stablecoins that are offered today in Europe are unlikely to be able to be offered going forward,” Hughes said. “At some point in the future, there’ll be a cut off at which that won’t be possible. A lot of that will depend on which assets are being properly registered within the European Union under the e-money regime.”

Kraken is also in the “advanced stages” of selection for its post-MiCA European headquarters, Hughes said, with France and Ireland having already proved to be popular destinations among rivals like Coinbase, Binance and Gemini. Kraken is presently registered with regulators in Italy, Spain, Ireland, Belgium and the Netherlands, according to its website.

“Internally we’re leaning strongly in one direction,” he added, declining to provide further details. 

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