Tether Passed on EU License Over MiCA Rule Requiring 60% of Reserves in Bank Deposits, CEO Says
Summary
- Tether said it dropped its application for a European Union license because of MiCA's rule requiring at least 60% of reserves to be held in bank deposits.
- Tether said MiCA's requirement to hold at least 60% of reserves in bank deposits does not fit the company's reserve management approach.
- The report said CEO Paolo Ardoino's comments came after the European Central Bank (ECB) and central banks across the European Union expressed opposition to the 60% bank-deposit requirement.
Forecast Trend Report by Period
Tether opted not to apply for a European Union license because of a rule requiring major stablecoin issuers to hold at least 60% of their reserves in bank deposits.
Wu Blockchain reported on September 22 that Tether CEO Paolo Ardoino said the company did not seek a local license because of reserve requirements under the European Union's Markets in Crypto-Assets regulation, or MiCA.
MiCA requires major stablecoin issuers to keep at least 60% of their reserves in bank deposits. Tether's position is that the requirement does not fit the way it manages its reserves.
Ardoino's comments came after the European Central Bank and central banks in the European Union expressed opposition to the 60% bank-deposit requirement.
