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Tether Diversifies, But MiCA Regulations Keep It Out of Europe

Tether Diversifies, But MiCA Regulations Keep It Out of Europe WikiBit 2025-07-23 22:01

Tether CEO Paolo Ardoino shared a glimpse into the stablecoin issuer’s investment bucket, revealing a diverse portfolio. However, despite the crypto

The surge in approvals troubled.

Stringent rules under MiCA have even Trumps USD1 stablecoin standing in uncertain waters, with the EU regulation requiring compliance with transparency, reserve backing, and conflict of interest rules.

“MiCAs main requirements for stablecoins are: full reserve backing with liquid assets, strict reporting and transparency rules, a cap of 1 million daily transactions for non-EU currency stablecoins, a significant part of reserves (30% to 60%) must be held in EU-regulated banks,” Dessislava Ianeva-Aubert, Senior Research Analyst at Kaiko, told BeInCrypto.

Notwithstanding, Tether will not relent, appearing unwilling to engage under these terms. According to the firms CEO, Tether will not join Europe until MiCA becomes safer for consumers and stablecoin coin issuers.

When MiCA becomes safer for consumers and stablecoin issuers, then we might reconsider.

— Paolo Ardoino ???? (@paoloardoino) July 23, 2025

This stance suggests that regulatory risks outweigh the benefits for Tether and its customers. Ardoino has held this perception for the longest time, articulating that Tether relies on attestations rather than full audits to validate its reserves.

In an April 2025 interview, CEO Paolo Ardoino acknowledged the company is still seeking a top-tier audit partner but highlighted obstacles.

“So, you are a Big Four auditing firm, and you have the entire banking industry that is your customer. Why would you risk 100,000 customers for a couple of stablecoins? Between the FTX disaster and the hacks, heists, and regulatory crackdowns in crypto, it hasnt been easy to sign on as a client for one of those top accounting outfits,” Ardoino stated.

Recently, Consumers Research criticized Tether for failing to provide an independent audit of its reserves. According to the research, Tethers lack of audit clarity could remain a critical barrier to full MiCA compliance.

“Tether‘s continual failure to undergo an independent audit raises a distressing red flag for the company and its USDT product. Tether has promised that it would conduct a full audit since at least 2017 but has still failed to do so. In August 2022, its CEO stated that an audit was ’likely months away. Years later, there is still no audit,” read an excerpt in the critique.

The next regulatory checkpoint will arrive in September, when MiCAs 9-month status update is expected.

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The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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