The CEO of Tether, the issuer of the USDT stablecoin, Paolo Ardoino, publicly explained the reasons behind his company’s refusal to register under the new European regulations for crypto assets known as MiCA. According to him, these regulations are “very dangerous for stablecoins” and could negatively impact the entire sector.
This is reported by Business • Media
Reasons for Tether’s Refusal to Register Under MiCA
In a speech at the TOKEN2049 conference in Dubai, Ardoino stated that the company would not apply for a license under the new requirements, particularly due to the possibility of USDT being delisted from exchanges in the European Union.
“The MiCA license is very dangerous for stablecoins, and even more dangerous for the small and medium banking sector in Europe. I decided not to apply because I have to protect over 400 million users worldwide”
Ardoino emphasized that one of the critical requirements is that 60% of stablecoin reserves must be held in insured deposits in European banks, which, according to him, could lead to their bankruptcy. He added that “I love Europe, but unfortunately, the European Central Bank is more interested in promoting the digital euro as a tool for controlling people”.
Market Reaction and the Future of Stablecoins
Following the implementation of MiCA rules in December 2024, several cryptocurrency exchanges, including Coinbase and Crypto.com, have already delisted USDT and other stablecoins that do not comply with the new regulations. At the same time, Ardoino expressed a positive outlook on the long-term future of Bitcoin, emphasizing that companies and investors will eventually follow its example.
“In the long run, companies will set an example, and others will follow. It’s never too late to buy Bitcoin”
At the time of publication, the market capitalization of USDT exceeded $149 billion, while Tether’s assets in U.S. government bonds reached $120 billion. Ardoino has repeatedly expressed concerns about regulatory activities within the European Union, believing that the MiCA regulation could impact the safety of stablecoins.
According to the official goals of the regulator, the MiCA requirements do not apply to the storage and transfer of stablecoins that do not have the appropriate licenses, which raises additional discussions in the crypto community.