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Tether develops technology solutions tailored to the European market. This new technology aims to address the challenges posed by the MiCA regulatory framework.
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Tether plans to introduce new technology solutions designed specifically for the European market to adapt to the evolving regulatory landscape in the region. The plan comes amid rumors that USDT could be delisted from Coinbase in Europe.
“As we have consistently stated, several aspects of MiCA could make the operation of EU-sanctioned stablecoins more complex and introduce new risks to both local banking infrastructure and the stablecoins themselves. ,” Tether said in a statement Friday.
“Tether is developing technology-based solutions that will be announced in due course and will be customized to meet the needs of the European market. We are very excited about our future product strategy. “, the company added.
Coinbase has set a compliance deadline for stablecoins in the EU of December 30, 2024. After the designated date, exchanges will delist non-compliant stablecoins in the European Economic Area (EEA). This change does not affect other regions.
This decision is part of Coinbase’s continued efforts to comply with MiCA regulations. Prior to Coinbase, many crypto exchanges such as OKX, Bitstamp, and Uphold terminated services for non-compliant stablecoins in the EU ahead of the full implementation of MiCA.
Tether CEO Paolo Ardoino previously explained that the company is in discussions with regulators regarding concerns regarding the strict cash reserve requirements set out in the MiCA regulation.
Ardoino warned that strict requirements could pose systemic risks for both banks and digital assets, making them vulnerable to mass withdrawals, as was the case with Silicon Valley banks.
Tether said that while certain aspects of MiCA could pose challenges for EU-approved stablecoins, EU regulators have created a structured regulatory environment that is critical to the sector’s growth. praised.
“The use case for stablecoins in Europe is very different from the use case in emerging markets and developing countries, where USDT is very popular,” Tether said. “Europe’s economy is stable and very structured. Moreover, the regulatory environment is evolving with the introduction of MiCA. Tether commends the efforts of EU regulators in establishing a structured framework. And it plays a key role in driving growth within this sector.”
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