Tether Walks Away from EU MiCA Over One Rule

[fullfitlarry]

https://x.com/coinbureau/status/2102490623572095458

Ok, so this is the reason why Tether didn't comply with MiCA as they think they are in a disadvantage as EU requires that 60% of their reserved to be put on commercial banks.

Although right now there are a call from ECB and all 27 EU Central Banks to scrap this rule.

So let's see how it goes, Tether CEO said that they might reconsider their decision if MiCA rule is going soft on them in the future.

And I think MiCA will have to give in to the pressure of ECB and those CB in their region.

[asriloni]

That's also the reason why USDT was getting delisted from EU. However, i've heard that 60% of reserve must be related to the total amounts used to operate in EU, not whole of their stable coins, but this still needs some verifications.

Other than it, it clearly explain how tether is not as cleaning as USDC by circle who could comply to the MICA regulation. Don't you think it's weird circle can easily comply with Mica while tether can't?

Theorically, missing 450m potential market is weird for tether unless they have a transparency concern that may cause them a trouble in the future. So they're looking for special permission to operate there with the guarantee they won't get risked by being not transparent enough.

This is why i prefer USDC instead of USDT.

[TastyChillySauce00]

So that was the really the reason Tether backed out from the EU MiCA compliance, the $100,000 capped insurance indeed doesn't make sense for a company with massive global reserve.

But, wouldn't it be easier for Tether to simply follow what Circle is doing? create EU entity and get EMI license, issues USDC from that entity, create EU specific USDC reserve pool and do routine rebalance? like a dual issuer structure, one for global and one specifically for EU. I suppose Tether really want a far simpler regulation to issue stablecoin in the EU. Tether actually already has presence in EU even after MiCA delisting through StablR which they invested in 2024.

[PostQuantumBTC]

I did not known that this was what that happened. If this is true, MiCA license is looking like a joke to me. Why must 60% of the fiat the stable coin is backed with must be in commercial banks? If it is in bonds, it is also good. What that is very crucial is that the money must not be misappropriated or misused.