The CEO of Tether, Paolo Ardoino, has voiced significant concerns regarding the requirements of the Markets in Crypto-Assets (MiCA) regulation. According to Ardoino, the new regulatory framework introduces additional risks for stablecoins, making them more "vulnerable" and complicated to operate.
Earlier, the cryptocurrency exchange Binance announced a change in its stablecoin policy, citing the new regulations as the reason for the shift. The CEO of Tether highlighted that the MiCA regulation imposes new challenges for unauthorized stablecoins, particularly affecting clients within the European Economic Area (EEA).
In an interview with The Block, Ardoino elaborated on the additional difficulties that the new rules could create. He emphasized that the MiCA regulation not only complicates the issuer's operations within EU countries but also makes stablecoins "extremely vulnerable and more risky to use."
"Recently, Tether has been actively involved in consultations on regulatory technical standards and remains concerned that MiCA contains several problematic requirements. Further discussions on these standards are crucial to ensure market clarity," Ardoino said.
He also mentioned that Tether is actively collaborating with its exchange counterparts in Europe concerning the requirements, including the current listing of the USDT stablecoin and the interpretation of key regulatory provisions.
"Tether is optimistic about the implementation of MiCA. However, it is essential that the regulatory policy adopted for stablecoins is balanced, protects consumers, and promotes the growth of our emerging industry," Paolo Ardoino added.
Under the MiCA regulation, to be a regulated stablecoin provider in the EU, issuers must have an Electronic Money Institution (EMI) license. This license primarily aims to protect consumers and ensure the unity of money, noted Monerium co-founder Jón Helgi Egilsson.
On June 4, 2024, Binance announced a policy change regarding certain stablecoins, restricting support for "unauthorized" assets in its products for EEA clients. The company cited MiCA regulation as the main reason for this policy adjustment.
Later, Binance CEO Richard Teng clarified that the cryptocurrency exchange would not delist unauthorized stablecoins but would limit their availability to EEA users in certain products. Notably, Binance is not the only exchange to impose restrictions on certain stablecoins. In March 2024, the company OKX stated that it had suspended support for USDT pairs in Europe.
