A recent discussion on the EU’s Crypto-Asset Market Regulation (MiCA) has sparked controversy, with Tether CEO Paolo Ardoino at the center. The proposed regulation requires stablecoin issuers to hold over 30% of their liquidity in banks, a move seen as favoring traditional banking systems.
Criticism of MiCA Regulation
Commentators argue that the regulation is unfair, as traditional banks are only required to keep 1% of eligible deposits in central banks as reserves. This disparity has raised concerns that the regulation may stifle innovation in the crypto industry.
Circle’s USDC Redemption Agreement Under Scrutiny
The details of Circle’s USDC redemption agreement in Europe have also raised questions, adding to the debate over the regulation. The proposed rules have sparked a wider discussion about the balance between regulation and innovation in the crypto market.
Note: This article is for informational purposes only and does not constitute investment advice.
Source: Panewslab.com
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