Tether considers the requirements of the MiCA Law for stablecoins worrying, says Paolo Ardoino – DiarioBitcoin

Ardoino assures that certain provisions make “the job of a stablecoin issuer is extremely complex”and defends that it is necessary to continue discussing said standards contemplated by the law before applying them.

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• Ardoino points out certain concerns regarding the MiCA Law
• Although this will come into effect in 2024, a provision related to stablecoins comes into effect at the end of June
• Issuers must register with the European Banking Authority in at least one country in the region
• Several exchanges, including Binance, They are already taking measures related to stablecoins in Europe

The CEO of Tether, Paolo Ardoino, expressed his concern about the entry into force of the MiCA Law in European territory, especially due to the implications that this could have for the stablecoin market.

Concerns with provisions of the MiCA Law

Ardoino’s statements came to light in a note sent to the media The Blockwhere he shared some reflections on the current panorama, highlighting the effects that the application of the MiCA Law could have for a company like Tether, responsible for the stablecoin with the largest market capitalization and greatest international adoption.

In this regard, Ardoino expressed his concern with certain “problematic requirements” contemplated in the MiCA Lawhighlighting that since Tether have actively participated in the consultations and technical tables enabled by European regulators:

“Not only could these requirements make the job of a stablecoin issuer extremely complex, but they could also make EU-licensed stablecoins extremely vulnerable and riskier to operate.” Ardoino argued, claiming that it is still necessary “continue discussing technical implementation standards, precisely to provide clarity to the market on certain provisions”

Provision for stablecoins comes into effect at the end of June

Ardoino’s statements come into place due to a specific provision on the Law Mica related to stablecoins, which comes into effect before the end of June.

According to several reports, the new law empowers the European Banking Authority (EBA) as the body responsible for overseeing the rules applicable to stablecoins. One of these requires issuers of this type of asset to obtain a license issued by the regulatory body in at least one member state before July 30, as well as compliance with high standards of corporate governance, conflicts of interest and reserve management. , in addition to holding one third of the funds in an independent banking entity.

This provision has led to several exchanges, including Binance, inform that it will restrict access to stablecoins “unauthorized” in Europe. Although they did not specifically mention the case of Tether, this measure would leave out several currencies of this type with significant trading volumes within said platform.

OKX, another major cryptocurrency exchange, already limited the functionality of the USDT stablecoin for its European customers earlier this year; although at the time he did not mention regulation as a reason for the change.

Article by Angel Di Matteo / DailyBitcoin

Picture of DiarioBitcoin, under free use license

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