{"id":20007,"date":"2024-12-30T12:39:59","date_gmt":"2024-12-30T10:39:59","guid":{"rendered":"https:\/\/forklog.com\/en\/tether-ceo-criticizes-mica-as-a-gift-to-banks\/"},"modified":"2024-12-30T12:39:59","modified_gmt":"2024-12-30T10:39:59","slug":"tether-ceo-criticizes-mica-as-a-gift-to-banks","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/tether-ceo-criticizes-mica-as-a-gift-to-banks\/","title":{"rendered":"Tether CEO Criticizes MiCA as a &#8216;Gift to Banks&#8217;"},"content":{"rendered":"<p>The current draft of the MiCA law in the EU is described as a &#8220;massive gift&#8221; to the traditional banking system, according to Paolo Diomede from The Graph.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">MiCA is nothing but a massive gift to the traditional banking system. Forcing stablecoin issuers to hold >30% of their liquidity in banks only ensures more profits for the legacy players. It\u2019s regulation designed to benefit the old system, not innovation.<\/p>\n<p>Once again, the\u2026 <a href=\"https:\/\/t.co\/RN1S9Si0Ut\">pic.twitter.com\/RN1S9Si0Ut<\/a><\/p>\n<p>\u2014 Paolo Diomede ?\u200d? (@pdiomede) <a href=\"https:\/\/twitter.com\/pdiomede\/status\/1872787178457031135?ref_src=twsrc%5Etfw\">December 27, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>His tweet was reposted by Tether CEO Paolo Ardoino.<\/p>\n<p>Diomede noted that the rules require stablecoin issuers to hold more than 30% of their liquidity in banks, while financial institutions have a reserve requirement of only 1%.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;This regulation is designed to benefit the old system, not innovation. Once again, the European Commission, the European Parliament, and the entire EU demonstrate what they do best: zero innovation and endless useless rules. A doomed continent led by clueless bureaucrats,&#8221; wrote the expert.<\/p>\n<\/blockquote>\n<p>In August, Ardoino <a href=\"https:\/\/u1f987.com\/en\/news\/tether-ceo-criticises-mica-as-a-threat-to-stablecoins-and-banking\">criticized<\/a> MiCA, stating that the law creates a &#8220;systemic risk&#8221; not only for stablecoins but also for the banking system itself.<\/p>\n<p>As of December 30, Coinbase has restricted access to USDT for European users due to the new regulations coming into effect. Other major exchanges do not plan to delist Tether&#8217;s stablecoin in the short term, noted JAN3 CEO Samson Mow. \u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Other than Coinbase (who is invested in Circle) no other exchange has plans to delist USDt in the short term for European users. Local European regulators have a grace period of more than 12 months.<\/p>\n<p>For the FUDsters, which exchanges have announced the delisting of USDt for\u2026 <a href=\"https:\/\/t.co\/Mtvyx5Exij\">pic.twitter.com\/Mtvyx5Exij<\/a><\/p>\n<p>\u2014 Samson Mow (@Excellion) <a href=\"https:\/\/twitter.com\/Excellion\/status\/1873326174530920595?ref_src=twsrc%5Etfw\">December 29, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Most EU countries have introduced a grace period of 12-18 months, allowing gradual adaptation to regulatory requirements. Only the largest American platform, which is an investor in Tether&#8217;s main competitor Circle, decided to cease support for USDT, Mow emphasized.<\/p>\n<p>Ardoino also noted his opinion.<\/p>\n<p>Circle, the company behind USDC, in October <a href=\"https:\/\/u1f987.com\/en\/news\/circle-secures-first-mica-compliant-stablecoin-license\">secured a license<\/a> <span data-descr=\"Electronic Money Institution\" class=\"old_tooltip\">Electronic Money Institution<\/span> to issue stablecoins in compliance with MiCA.<\/p>\n<p>In November, Tether decided to discontinue support for the euro-based stablecoin EURT. In the EU, the company will focus on supporting third-party projects that comply with regulatory rules and promoting the Hadron asset tokenization platform.<\/p>\n<p>Earlier, Tether invested in European stablecoin issuers Quantoz and StablR as part of a new strategy on the continent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The current draft of the MiCA law in the EU is described as a &#8220;massive gift&#8221; to the traditional banking system, according to Paolo Diomede from The Graph. MiCA is nothing but a massive gift to the traditional banking system. Forcing stablecoin issuers to hold >30% of their liquidity in banks only ensures more profits [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[733,1138,36,807,1245],"class_list":["post-20007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-europe","tag-opinions","tag-regulation","tag-stablecoins","tag-tether-usdt"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=20007"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20007\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/20006"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=20007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=20007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=20007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}