Tether Refuses EU MiCA License Over Reserve Requirement

Tether's Paolo Ardoino revealed that his company refused to apply for an EU MiCA license due to a specific reserve requirement. The rule mandates that major stablecoin issuers hold at least 60% of their reserves in commercial bank deposits.

Ardoino cited this requirement as the reason for Tether's decision, not a rejection of the entire regulatory framework. The European Central Bank and other EU central banks have proposed removing this requirement, instead recommending liquidity requirements based on assets maturing within one to five working days.