Binance Announces Restrictions, Tether CEO Says “We Are Concerned”

Paolo Ardoino, CEO of Tether, the issuer of the largest stablecoin USDT, expressed his concerns about the upcoming legislation.

Tether CEO Paolo Ardoino commented on the impact of the MiCA regulation, which will come into force in the European Union, on stablecoins.

Binance will impose restrictions

Binance, the world's largest cryptocurrency exchange, announced earlier this week that it will restrict access to "unauthorized" stablecoins starting June 30.

“Binance will not delist any unauthorized stablecoins from spot, but will restrict European users' access to them in some products,” said Binance CEO Richard Teng.

Terms of the MiCA regulation

Under MiCA, in order to become a legally regulated stablecoin issuer in the European Union, it will be necessary to have an electronic money institution (EMI) license.

Jon Egilsson, founder of Monerium, the first company to obtain this license to legally issue stablecoins in Europe, said: “The EMI license largely serves to ensure the singularity of money and protect customers. "But it won't work if regulators don't enforce the law, and EU regulators have failed so far in this regard," he said.

Tether CEO is worried

“As Tether, we have been actively involved in consultations for the technical standards of the regulations over the past months, and we are concerned that MiCA has some problematic provisions,” said Paolo Ardoino.

Tether CEO commented, “These conditions not only overly complicate the business of stablecoin issuers, but can also make the activities of EU-licensed stablecoins extremely risky.”

According to Ardoino, further discussions are needed on how to implement these technical standards.