Tether may remain in the EU market despite concerns about the impact of MiCA rules on stablecoins.
Stablecoin company Tether plans to bring new products to the EU market amid changing regulations, according to a report from Coindesk.
Tether said in a statement that it is developing a technology-based solution “customized to meet the needs of the European market,” adding that it will make the technology public “in due course.”
The company broadly praised the EU’s Markets in Cryptoassets (MiCA) Regulations, but criticized certain aspects of the new regulations. Tether said:
“As we have consistently stated, several aspects of MiCA will make the operation of EU-licensed stablecoins more complex and pose new risks to both local banking infrastructure and the stablecoins themselves. There is a possibility.”
In April, Tether CEO Paolo Ardoino told TheBigWhale that the MiCA rules set out strict requirements. He highlighted rules that require issuers of stablecoins to hold a certain percentage of their collateral in cash deposits with banks, saying that reserves made up of U.S. Treasuries provide better protection against bank failures. He said it would be.
Ardoino said in an April interview that Tether has no plans to be regulated in the EU. But in a later tweet, he said the company had discussed the issue with EU regulators and “hopes to continue the dialogue.”
The latest news comes alongside reports that leading cryptocurrency exchange Coinbase will restrict access to certain stablecoins by the EU by December 30, 2024 in accordance with MiCA regulations. Although Coinbase’s statement did not mention Tether by name, Coindesk identified Tether as one of the stablecoin issuers without the necessary licenses.
Other crypto platforms have already changed their lists. Bitstamp delisted Tether’s euro-pegged EURT stablecoin in June to comply with MiCA. We support USDT and five other stablecoins that were delisted this summer due to EU regulatory changes.
In June, Binance restricted EU access to unspecified unapproved stablecoins, including removing access to spot trading until further notice.
OKX also delisted the USDT pair in March, although representatives claimed the change was due to reasons other than European regulatory changes.
Tether’s USDT is not the only stablecoin affected by this change, it is the largest stablecoin that dominates the stablecoin market with a market capitalization of $119 billion.
Tether’s main competitor, Circle, has received EU licenses for both its dollar-backed stablecoin USDC and its euro-backed stablecoin EURC. USDC is currently the second largest stablecoin, with a market capitalization of $35 billion.
Disclaimer: The information contained herein is provided without taking into account your personal circumstances and should not be construed as financial advice, an investment recommendation, or an offer or solicitation to trade in cryptocurrencies. Not.
Join our newsletter
Be the first to know!
Thousands of subscribers already get the news
Fresh, free, and delivered straight to your inbox. The best writers, the hottest stories, delivered to you once a week.
We respect your privacy and your email address is kept secure.
