Paolo Ardoino, boss of Tether, finds that the European Union’s MiCA regulations “contain several problematic requirements” for stablecoins.
Stablecoins under threat in Europe? As of December 30, 2024, the European regulation on markets in crypto-assets (Markets in Crypto-Assets, or MiCA), will be harmonized at European level. He will manage:
- public offering and admission to trading of tokens
- the provision of services on crypto-assets by service providers
- preventing market abuse of crypto-assets
A set of rules that worries the boss of Tether (USDT).
“These requirements (this regulation Editor’s note) could not only make the work of a stablecoin issuer extremely complex, but also make the latter, under European license, extremely vulnerable and more risky to exploit. As with any regulatory framework of this scale, “deeper discussions on technical implementation standards are crucial to provide clarity”, underlined Paolo Ardoino, boss of Tether, in an interview with the media The Block.
Especially since several cryptocurrency exchange platforms have announced the possibility of stopping listing stablecoins that do not comply with European rules.
A stablecoin (or stable cryptocurrency) is a crypto-asset (or digital asset) that is pegged to a fiduciary currency such as the euro or the dollar. A stablecoin can also be backed by other assets (such as gold). This is called the underlying of the stablecoin. When the price of the underlying varies upwards or downwards, the value of the stablecoin must align with it. The promise is to permanently maintain the parity, for example 1 USDT = 1 dollar.
In a post published on June 3 on its blog, the Binance company, for example, indicated that it would put in place “restrictions on its entire product offering” to “prevent users from accessing new products or service offerings involving unauthorized stablecoins” from June 30. At the moment, the official list of stablecoins that will continue to be listed is not yet available but USDT could potentially be removed from certain cryptocurrency exchanges.
Source: https://www.bfmtv.com/crypto/regulation/les-nouvelles-regles-de-l-europe-sur-les-stablecoins-inquietent-le-patron-de-tether_AV-202406060731.html
