Tether faces uncertainty in Europe amid MiCA rules
Tether faces challenges with MiCA’s reserve management rules, which could disrupt its business model.
Coinbase is preparing to delist stablecoins in Europe that fail to meet the EU’s Markets in Crypto-Assets Regulation (MiCA) by the end of 2024. However, uncertainty surrounds the regulatory status of Tether’s USDT, the world’s largest stablecoin. While Coinbase has yet to confirm whether USDT will be affected, there are reports that Tether could struggle to comply with MiCA’s requirements.
The European Securities and Markets Authority (ESMA) has not provided clear guidance on USDT’s compliance. Tether has raised concerns over MiCA’s reserve management rules, which the company believes could disrupt its business model and introduce risks to both local banking systems and stablecoins.
Tether CEO Paolo Ardoino hinted that the company might shift its focus towards developing markets, like Argentina, rather than navigating the regulatory complexities of the European Union.
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