⚡ Tether’s Survival Plan: The Bold Strategy to Dodge MiCA's Hammer
posted 7 Oct 2024
In response to the MiCA regulations that took effect in the EU on July 1, 2024, Tether has revealed it’s working on a game-changing solution, specifically created for the European market. This bold move comes as Coinbase sets strict deadlines for compliance, with rumors swirling about a possible delisting of USDT within the European Economic Area.
"We recognize that MiCA is substantially reshaping the stablecoin landscape within the EU. Certain regulatory provisions pose additional challenges for issuers," said a Tether spokesperson. "Tether is developing a technology-based solution, which we will unveil in due course and will be tailor-made to serve the necessities of the European market."
The clock is ticking, and stablecoin issuers face a make-or-break moment: either adapt or be forced out.
We’ve covered these regulations in detail in our article “What’s Next for Stablecoins After June 30?”
In short, issuers of Asset-Referenced Tokens (ART) must secure a special regulatory license and provide advance notice of any upcoming stablecoin issuance.
Circle, the issuer of USDC, and Coinbase, one of the largest crypto exchanges, were quick to obtain the necessary approvals for USDC. Now, Coinbase’s CEO, Brian Armstrong, is setting the stage for competitors like Tether to follow suit.
Tether’s CEO, Paolo Ardoino, is now under pressure to ensure USDT remains the dominant force in the stablecoin market.
"We recognize that MiCA is substantially reshaping the stablecoin landscape within the EU. Certain regulatory provisions pose additional challenges for issuers," said a Tether spokesperson. "Tether is developing a technology-based solution, which we will unveil in due course and will be tailor-made to serve the necessities of the European market."
Tether's new solution is set to meet MiCA’s strict standards on reserves and transparency. The company is keen to address both the demands of the European market and global regulatory trends for digital assets.
For years, the crypto community has called on Tether to conduct a full independent audit.
Related: The Evolution of Stablecoins
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