Tether and MiCA!

Tether CEO Paolo Ardoino has confirmed it:
USDT will not comply with the EU’s MiCA regulation and will not seek a license to operate in Europe.

Speaking publicly in Dubai, Ardoino called MiCA "very dangerous for stablecoins", warning that the framework could do more harm than good, for both crypto users and the European banking sector.

Key concerns raised:

• Mandatory reserve placement in EU banks
  MiCA requires 60% of stablecoin reserves to be held in Union-based institutions.
  Ardoino argues this increases systemic exposure and could ironically destabilize smaller EU banks over time.

• Ban on interest-bearing stablecoins
  MiCA prohibits interest payouts, removing a core incentive for holding stablecoins in the first place.

• Severe issuance constraints
  According to Tether, these limits could dry up liquidity in volatile moments, weakening market resilience.

• Control over financial freedom
  Ardoino didn’t hold back:
  “The ECB is more interested in promoting the digital euro as a way to control people and monitor how they spend their money.”

Tether by the numbers (May 2025):

• $149B market cap
• ~$120B in U.S. Treasuries
• 400M+ users globally
• Largest stablecoin in the world

What’s next?

• Exchanges like Kraken and Crypto.com have begun delisting USDT in Europe.
• USDC remains; Circle has chosen to comply with MiCA, opting for a different path.
• Meanwhile, Tether is doubling down on El Salvador, UAE, Asia, and LATAM, regions with more open regulatory frameworks.

Ardoino’s bottom line:
“We must protect our users. MiCA could crush competition, not support innovation. We prefer to stay out.”

Europe is stepping into a new regulatory era.
But the question remains:

Is MiCA really protecting users, or just clearing the way for the Digital Euro?

Let us know what you think.
Is Tether right to walk away?