Tether CEO Explains Why It Abandoned the EU MiCA License Application: Alliance Rules May Endanger Asset Reserve Security and User Interests

Recently, in a media interview, Tether CEO Paolo Ardoino explained why the $184 billion stablecoin USDT did not apply for the EU MiCA regulatory license, bluntly stating that the regulations pose significant risks to stablecoins.

Ardoino stated that Tether’s decision to abandon the MiCA license application was a well-considered move aimed at protecting over 400 million USDT users from potential risks.

He described the regulations as a "very dangerous stablecoin regulatory framework," primarily concerned with the requirement to hold 60% of reserves in uninsured accounts at small European banks, which he fears may struggle to handle large-scale redemption requests.

Ardoino was blunt in criticizing the legislation as "poorly conceived." He emphasized that, based on user interests, Tether chose not to apply for the license precisely as a prudent move to "skip MiCA to protect users."

Ardoino’s remarks come as the EU’s MiCA regulations take full effect, sparking further discussion on how large stablecoin issuers should respond to regional regulatory requirements.

In summary, Tether’s decision reflects the complex trade-offs faced by leading stablecoin issuers between regulatory compliance and reserve security, as well as the difficult reality of balancing the two.

#Tether #MiCA License