Following Binance’s announcement that it will begin to restrict the use of “unauthorized” stablecoins in Europe at the end of this month, Paolo Ardoino, CEO of Tether, the world’s largest stablecoin issuer, expressed concern about the EU’s Cryptoasset Market Regulation (MiCA) and its impact on stablecoins. expressed concern.

(Will USDT lose a large market? EU MiCA new stablecoin regulations are about to take effect: How does Binance ensure compliance)

With MiCA on the road, will USDT lose the European market?

From June 30, 2024, MiCA stipulates that only electronic money institutions (EMIs) and credit institutions (such as banks) can issue and provide stablecoin services within the European Economic Area (EEA). This means that many existing stablecoins will be classified as "unauthorized stablecoins" and subject to corresponding restrictions.

The exchange OKX has taken the lead in delisting USDT trading pairs in Europe, and Kraken is also reported to be considering this measure.

Binance CEO Richard Teng clarified on X on Monday:

Binance will not immediately delist any unauthorized stablecoins, but will limit their availability to European users only on certain products. We will share updates on regulated stablecoins soon.

But Binance’s announcement did not mention Tether’s USDT.

Tether expresses concern over MiCA stablecoin

According to The Block, Tether CEO Paolo ArdoinoArdoino said that Tether has been actively participating in regulatory technical standards consultations in the past few months, but is still concerned that MiCA contains some problematic requirements.

Not only would these requirements make the job of stablecoin issuers extremely complex, they would also make EU-licensed stablecoins extremely fragile and operationally risky.

Ardoino also stated that Tether has engaged extensively with exchange counterparties in Europe regarding the requirements, including the ongoing listing of USDT and other Tether tokens, and the interpretation of key regulatory provisions.

Binance also acknowledged that the upcoming regulations may bring challenges. Binance said in a blog post:

There are currently very few regulated stablecoins and limited liquidity, which may not be enough to support the needs of the entire industry.

However, Binance also expects that more regulated stablecoins will appear on the market in the coming months, which will allow the market to fully shift to regulated stablecoins over time, ensuring that MiCA’s goals are achieved.

This article MiCA will be launched at the end of the month, and Tether CEO is worried about the operational risks of stablecoins. It appeared first on Chain News ABMedia.