Tether Abandons EU License Bid Over Reserve Requirements

Tether's CEO Paolo Ardoino announced that the company has abandoned its plans to apply for an EU license due to new regulations requiring major stablecoin issuers to hold at least 60 percent of their reserves in bank deposits.

The decision is linked to objections from the European Central Bank and some EU central banks to a key provision of the Crypto Asset Market Regulation (MiCA) that mandates this reserve requirement.

Ardoino stated that Tether's operating model would be significantly impacted by the regulation, which requires a significant portion of reserves to be held in bank deposits.