Tether abandons EU license application over reserve requirements

Tether CEO Paolo Ardoino has announced that the company is abandoning its plans to apply for an operating license within the European Union.

The decision is driven by regulatory requirements under the Markets in Crypto-Assets (MiCA) framework. Specifically, the regulations mandate that major stablecoin issuers hold at least 60 percent of their reserves in bank deposits. Ardoino stated that these conditions directly impact the company’s reserve management and operating model.

The move follows objections from the European Central Bank (ECB) and various EU central banks regarding the specific provision requiring high levels of bank deposits. While MiCA aims to establish a unified regulatory framework for crypto-asset services across the EU, the reserve requirements have sparked ongoing debate regarding the structure of the stablecoin market.