Tether CEO Criticizes EU’s MiCA Regulations, Opts Out of Registration
Tether CEO Paolo Ardoino has publicly defended the company’s decision to forgo registration under the European Union’s Markets in Crypto-Assets (MiCA) framework, citing concerns over the regulation’s impact on stablecoins and the broader banking sector.
Speaking at the Token2049 conference in Dubai, Ardoino labeled the MiCA framework as “very dangerous” for stablecoins, arguing that its requirements could destabilize small and medium-sized banks in Europe. He specifically pointed to the mandate for stablecoin issuers to hold 60% of their reserves in insured cash deposits within European banks, suggesting this could strain the financial system.
“I decided not to apply for the MiCA license because I need to protect the 400 million+ users that we have around the world,” Ardoino stated. He expressed skepticism about the European Central Bank’s intentions, implying that the promotion of a digital euro might be aimed at increasing control over citizens’ spending habits.
Since MiCA’s implementation in December 2024, several cryptocurrency exchanges have adjusted their offerings to comply with the new regulations. Notably, Kraken and Crypto.com have delisted multiple stablecoins, including Tether’s USDT, to align with MiCA’s standards.
Ardoino also touched upon Tether’s strategy in the United States, indicating that the company is considering different product offerings to navigate the competitive landscape of local stablecoin issuers. He noted that efforts by the U.S. and other nations to establish Bitcoin reserves are “just inevitable,” emphasizing the growing institutional interest in cryptocurrency.
