Tether will launch a new product on the EU market in compliance with the MiCA law

What’s new? Tether plans to introduce a new technology solution designed for the European market taking into account the provisions of the new Markets in Crypto-Assets (MiCA) regulation. The document has already partially entered into force, making it illegal for stablecoins whose issuers are not registered in at least one country in the bloc. Earlier Coinbase, OKX, Bitstamp and Uphold exchanges reported about the restriction of access to USDT stablecoin issued by Tether in Europe.

Material by Crypto Briefing

What else is known? In April, Tether CEO Paolo Ardoino criticized MiCA’s provision for storing stablecoin reserves in uninsured cash deposits that would simply disappear in the event of a bank failure. He said issuers should be able to hold 100% of reserves in Treasury bills.

At the time, he also noted that Tether was discussing its concerns with the European Securities Market Authority (ESMA), which has been designated as the cryptocurrency industry’s regulator under MiCA.

In June, Ardoino revealed that Tether had been actively involved in the MiCA standards consultation for several months, but it remains concerned about several problematic requirements that could make it more difficult for stablecoin issuers to operate.

In a new media commentary, Ardoino noted the company’s concerns remain:

“As we have consistently expressed, some aspects of MiCA make the operation of EU-licensed stablecoins more complex and potentially introduce new risks to both local banking infrastructure and stablecoins themselves.”

However, he noted that the company will introduce a new technology solution tailored for the European market within a reasonable timeframe.

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Despite criticism of the new legislation, Tether has also previously thanked EU regulators for creating a structured regulatory environment that is critical to the sector’s growth.

The company noted that stablecoin options in Europe are very different from those seen in emerging markets, where USDT is extremely popular. In the latter, USDT is used as a safe haven asset in the face of high inflation of the national currency, as well as an alternative to the traditional banking system, where access is limited.