As the EU enforces new regulations with MiCA, Tether surprises with its CEO explaining why USDT won't comply. This divisive move highlights the clash between independence and fears of excessive regulation. Deciphering the impacts of this consequential decision.
As Europe enters a new era of cryptocurrency regulation, the global leader in stablecoins, Tether, chooses to step away from the European framework. Let’s delve into an ideological showdown regarding the future of digital currencies.
During the Token2049 conference in Dubai, Paolo Ardoino, the CEO of Tether, minced no words. He staunchly criticized the European regulation MiCA, deeming it “very dangerous” for stablecoins and European banks.
He believes the requirements imposed by MiCA, such as holding 60% of reserves in European bank deposits, could weaken the local financial system in favour of greater centralization. Confronted with these constraints, Tether has chosen not to register with European authorities.
With a market capitalization of $149 billion, Tether’s USDT stablecoin remains the most widely used globally. However, its exclusion from European platforms seems inevitable. Several exchanges like Kraken or Crypto.com have already announced the removal of USDT to comply with MiCA.
Paolo Ardoino justifies this decision by the need to “protect the 400 million users” of Tether worldwide, who do not benefit from the “European level of protection.” He also criticizes the European Central Bank for showing more interest in the digital euro than crypto innovation.
Beyond Tether, the MiCA regulation raises many concerns in the crypto ecosystem. Ardoino denounces a “fear of compliance” that deters companies from operating in Europe. Several international platforms now opt to exclude non-compliant stablecoins rather than comply with MiCA requirements.
Tether’s stance symbolizes the dilemma faced by many players in the crypto sector. The choice between adhering to institutional norms or preserving a decentralized approach geared towards emerging markets. A crucial debate for the future of digital currencies in Europe.
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