Why Tether refuses to comply with MiCA

Date: 2025-05-23

Is Tether MiCA compliant? The EU’s new Markets in Crypto-Assets regulation, better known as MiCA, is the first major attempt by a global economic power to create clear, region-wide rules for the crypto space, and stablecoins are a big focus.MiCA mandates best practices. If a stablecoin is going to be traded in the EU, its issuer has to follow some stringent rules:1. You need a licenseTo issue a stablecoin in Europe, you must become a fully authorized electronic money institution (EMI). That’s the same kind of license traditional fintechs need to offer e-wallets or prepaid cards. It’s not cheap and it’s not quick. 2. Most of your reserves have to sit in European banksThis is one of the most controversial parts of MiCA. If you issue a “signif...

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