Paolo Ardoino: EU MiCA regulations are very dangerous for stablecoins, giving up application aims to protect users

According to Coin Bureau, Tether CEO Paolo Ardoino explained the reason why USDT has not applied for the EU MiCA license, stating that the regulation is very dangerous for stablecoins. Paolo Ardoino stated that MiCA may force issuers to deposit 60% of their reserves in uninsured cash deposits with small European banks, which may not be able to cope with large-scale redemptions. Paolo Ardoino believes that the legislation was not well considered and stated that skipping MiCA is to protect Tether's over 400 million users.