To comply with the European Union’s Markets in Crypto-Assets (MiCA) regulations, Kraken and Crypto.com are developing proprietary stablecoins, aiming to ensure continued operations in the European market by 2025.
Compliance-Driven Stablecoin Development
As reported by Bloomberg, Kraken is working on a dollar-backed stablecoin through its Irish subsidiary, ensuring compliance with MiCA and uninterrupted service in the EU. Similarly, Crypto.com is advancing its own proprietary stablecoin, expected to launch later in 2025, though details on its fiat backing remain undisclosed.
This initiative follows Crypto.com’s recent expansion across the European Economic Area (EEA) after securing a MiCA license from Malta’s financial regulator.
MiCA Regulations Push Exchanges to Act
Under MiCA, which took effect in January 2025, stablecoin issuers must secure EU authorization to operate. The European Securities and Markets Authority (ESMA) has mandated that all non-compliant stablecoins be delisted by the end of Q1 2025.
As major stablecoin issuers, such as Tether (USDT), struggle to meet compliance requirements, exchanges are shifting towards in-house alternatives to retain market access. KuCoin, for instance, has applied for a MiCA license in Austria to ensure regulatory adherence across the EEA.
A Growing Trend Toward Regulatory Compliance
These developments highlight the crypto industry’s shift toward regulatory alignment. With major exchanges prioritizing compliance, the market is evolving toward greater transparency, fostering confidence among investors and regulators alike.