Tether CEO: The EU MiCA regulation is "very dangerous" for stablecoins, and abandoning the application is to protect users

According to Coin Bureau, Tether CEO Paolo Ardoino explained the reason why USDT has not applied for the EU MiCA license, stating that the regulation is "very dangerous for stablecoins."

He mentioned that MiCA could force issuers to keep 60% of their reserves in uninsured cash deposits at small European banks, which may not be able to handle large-scale redemptions. Ardoino believes the legislation is "poorly considered" and stated that "skipping MiCA is to protect Tether's over 400 million users."