Paolo Ardoino says that changes in the regulation of stablecoins will make crypto assets more vulnerable

Tether CEO Paolo Ardoino believes that the new MiCA rules regarding “unauthorized stablecoins” for users from the European Union will make the issuer’s work more difficult. According to the company’s CEO, due to the changes, the use of stablecoins will become much more risky.

“Tether has been actively involved in regulatory technical standards consultations over the past months and remains concerned that MiCA contains several problematic requirements,” Ardoino said.

He also noted that Tether is actively consulting with its exchange counterparties in the EU in the context of requirements that relate to the issuance of USDT and the interpretation of key regulations.

Let us remind you that according to the innovations of MiCA, companies issuing stablecoins will need to obtain a license to issue cryptocurrencies. This is necessary to obtain the status of a regulated supplier of such assets.

It recently became known that Binance plans to limit the operation of certain stablecoins to clients from the European Economic Area in the near future. This initiative is in preparation for rigorous compliance with the new MiCA digital asset regulatory parameters.

The company warned that from the end of June, all stablecoins in circulation in the EEA will be required to obtain an official license from one of the European regulators.

The licensing procedure implies strict compliance with the criteria for disclosing company data, risk management and the availability of reserves to guarantee the stability of the value of crypto assets.

Binance said that it is to limit the availability of “unregulated stablecoins” in the EU by June 30, aligning with the upcoming MiCA Regulation.

The list of stablecoins approved for use is planned to be compiled in the coming weeks based on information received from regulators.