Tether CEO explains why it dropped its application for an EU MiCA license: alliance rules or risks to reserve security and user interests
Recently, Tether CEO Paolo Ardoino gave an interview to the media, explaining why USDT—a stablecoin with a market value of $184 billion—did not apply for an EU MiCA regulatory license, saying the regulation poses significant risks to stablecoins.
Ardoino said Tether’s decision to forgo applying for a MiCA license was a carefully considered move, intended to protect more than 400 million USDT users from potential risks.
He described the framework as a “very dangerous stablecoin regulatory regime,” mainly because he is concerned that the rules require it to place 60% of its reserve funds into uninsured accounts at small European banks—banks that may struggle to handle large-scale redemption requests.
Ardoino also sharply criticized the legislation as being “not well thought out.” He emphasized that, based on considerations for users’ interests, Tether chose not to apply for a license—an additional prudent step to “skip MiCA to protect users.”
Ardoino’s remarks come as the EU MiCA regulations are fully taking effect, sparking further discussion about how major stablecoin issuers will respond to regional regulatory requirements.
In summary, Tether’s decision also reflects the complex trade-offs that leading stablecoin issuers face between compliance and regulatory requirements and reserve security, as well as the real-world difficulty of striking a balance.
#Tether #MiCA牌照
Recently, Tether CEO Paolo Ardoino gave an interview to the media, explaining why USDT—a stablecoin with a market value of $184 billion—did not apply for an EU MiCA regulatory license, saying the regulation poses significant risks to stablecoins.
Ardoino said Tether’s decision to forgo applying for a MiCA license was a carefully considered move, intended to protect more than 400 million USDT users from potential risks.
He described the framework as a “very dangerous stablecoin regulatory regime,” mainly because he is concerned that the rules require it to place 60% of its reserve funds into uninsured accounts at small European banks—banks that may struggle to handle large-scale redemption requests.
Ardoino also sharply criticized the legislation as being “not well thought out.” He emphasized that, based on considerations for users’ interests, Tether chose not to apply for a license—an additional prudent step to “skip MiCA to protect users.”
Ardoino’s remarks come as the EU MiCA regulations are fully taking effect, sparking further discussion about how major stablecoin issuers will respond to regional regulatory requirements.
In summary, Tether’s decision also reflects the complex trade-offs that leading stablecoin issuers face between compliance and regulatory requirements and reserve security, as well as the real-world difficulty of striking a balance.
#Tether #MiCA牌照