In an interview with Coin Bureau, Tether CEO Paolo Ardoino explained why the company did not apply for the EU's MiCA license. He stated that MiCA is 'very dangerous' for stablecoins, as it could require issuers to hold 60% of reserves in uninsured cash deposits at small European banks, which are incapable of handling large-scale redemptions. Ardoino described MiCA as 'poorly designed legislation' and said Tether chose to forgo the application to protect the interests of over 400 million users.
According to Coin Bureau, Tether CEO Paolo Ardoino has shed light on why the company refrained from applying for the EU's Markets in Crypto-Assets (MiCA) license. Ardoino explicitly stated that MiCA is 'very dangerous' for stablecoins, as its rules may require issuers to place 60% of their reserves in uninsured cash deposits at small European banks. These banks, he argued, are fundamentally unable to cope with large-scale redemption demands during a crisis.
Ardoino called MiCA a 'poorly designed piece of legislation' and emphasized that Tether decided to skip the application in order to protect the interests of more than 400 million users globally. This stance highlights growing concerns among stablecoin issuers regarding the EU regulatory framework, particularly around reserve security and liquidity.
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