The preferred DLAR of Argentines is in DANGER: it can disappear from these virtual caves

Tether, the issuing company of the stablecoin most famous on the market USDT, For now it will not comply with the rules established in the Regulation for the Cryptoasset Market (known as MiCA), which will come into force next July in the European market.

This was confirmed by the CEO of the company, Paolo Ardoino, who also assured that the regulations are too restrictive, expensive and unclear. Meanwhile, the firm has not yet taken any measures to comply with the regulations, according to Ardoino’s own statements.

This decision has implications for the business of USDTsince the cryptocurrency runs the risk of be banned on the exchange platforms (or exchanges) of the Old Continent. Below, all the details.

Crypto regulation: why Tether doesn’t want to join

MiCA requires that companies issuing stablecoins They are backed by 30% cash or equivalent assets in regulated banks. For system-sized stablecoins, such as USDT, this requirement rises to 60%. For Tether, these requirements are excessively onerous and could destabilize the market.

In addition to this, the regulation requires the creation of a “European passport” for cryptoasset companies that meet their requirements. This means that an organization that obtains a license in one EU member state could operate throughout the bloc. The USDT issuer, however, is not interested in obtaining this passport since it considers that it would limit its flexibility and its ability to innovate.

For these reasons and more, Ardoino commented that he still they took no action so that the stablecoins issued by Tether conform to the new rules of the European Union (EU). Instead, the company is in talks with European regulators to try to find a solution that will allow it to comply with Mica without having to comply with all the requirements that you consider excessive.

What can happen to the preferred crypto dollar

Due to the complications Tether faces in complying with MiCA regulations, it is likely that USDT lose your regulated status within the EU in the near future.

At the same time, it is expected that cryptocurrency exchanges operating in the region eliminate trade of this stablecoin. This measure has already been consolidated on platforms such as OKX and Binance is expected to follow suit shortly.