According to Deep Tide TechFlow, on December 31, as reported by The Block, the EU's Markets in Crypto-Assets (MiCA) regulation sets strict regulatory requirements for stablecoin issuers within the EU, yet Tether's USDT has not yet received MiCA compliance certification. WeFi's growth director Agne Linge pointed out that meeting these requirements may be economically challenging for large stablecoin issuers like Tether.
Linge stated that the new EU law now requires small stablecoin issuers to hold 30% of their reserves in low-risk commercial banks within the EU, while large stablecoin issuers like Tether must hold 60% or more of their reserves in banks. Given Tether's massive capital scale and global adoption, meeting this demand economically is not feasible without disrupting the broader crypto ecosystem.
However, Linge believes that Tether's massive market value and global adoption make it unlikely to face direct financial consequences from potential Brexit. 'Tether's operations are largely unaffected by potential regional disruptions, and the company's profit margins are high, with an expected profit of $10 billion by the end of the year.'