This digital stablecoin will be withdrawn from European stock exchanges before June 2024

The CEO of Tether, the issuer of USDT, Paolo Ardoino, criticized the European MiCA regulation. Saying that Tether will not comply with these new laws, which could lead to its stablecoin being removed from European exchanges.

Tether does not want to be regulated in Europe

In an interview with Menasa The great whale On the sidelines of Paris Blockchain Week, the CEO of Tether, the company issuing USDT, Paolo Ardoino, discussed various topics related to the cryptocurrency sector, including the European MiCA regulation, which he strongly criticized, saying that Tether would not comply with these new laws.

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Paolo Ardoino was particularly pessimistic about the future of cryptocurrency companies within the European Union. He strongly criticized the European law MiCA on crypto asset markets, which will come into force in June 2024.

For Tether's CEO, MiCA is an overly strict regulation that attempts to slow down the adoption of dollar-to-dollar stablecoins in Europe, "risking stifling innovation" and hindering new services developed on blockchain infrastructures.

Paolo noted that Tether could choose not to comply with EU regulations because the restrictions imposed by MiCA are too harsh. The move could force European exchanges to remove USDT from their platforms.

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Tether (USDT) continues talks with European regulators and fears of bank failure

After the publication of the interview, Paolo Ardoino wanted to correct his comments in a post on the social network X. He also affirmed that Tether was continuing discussions with European regulators:

“To correct the statement: We are still discussing with the regulator our concerns expressed during our interview that this would pose serious risks to EU-regulated stablecoins.”

Furthermore, Paolo Ardoino's concerns mainly come from the requirements of the MiCA law which requires that 60% of the reserves of stablecoin issuers be held in liquid form in a bank account. While Arduino believes that it is very risky to keep a large part of cash reserves in banks. Considering the Silicon Valley bank failure that almost destroyed the stability of the USDC currency.

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In addition, MiCA imposes the distribution of reserves between 6 to 12 banks, depending on the total amount of funds. Paolo Ardoino says that it is already difficult to find a bank in Europe that accepts business in the cryptocurrency sector, so finding between 6 and 12 banks that allow this seems practically impossible.