Tether Dropped EU License Application Over MiCA Rule Requiring 60% of Reserves in Bank Deposits, CEO Says
Summary
- Tether said it dropped its European Union license application because of a rule requiring it to hold at least 60% of reserves in bank deposits.
- Tether said the 60% bank-deposit requirement under MiCA does not fit its reserve management approach.
- Ardoino’s remarks came after the European Central Bank (ECB) and central banks in the European Union expressed opposition to the 60% bank-deposit requirement.
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Tether dropped its application 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 Chief Executive Officer Paolo Ardoino said the company did not apply for 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 says that requirement does not fit the way it manages its reserves.
Ardoino’s remarks came after the European Central Bank and central banks in the European Union expressed opposition to the 60% bank-deposit requirement.
JH Kim
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