TechFlow news, December 31 — According to The Block, the EU's Markets in Crypto-Assets (MiCA) regulation has set strict regulatory requirements for stablecoin issuers within the European Union; however, Tether's USDT has not yet obtained MiCA compliance certification. Agne Linge, Head of Growth at WeFi, pointed out that meeting these requirements could be economically challenging for major stablecoin issuers like Tether.
Linge stated that the new EU law now requires smaller stablecoin issuers to hold 30% of their reserves in low-risk commercial banks located within the EU, while larger issuers such as Tether must place 60% or more of their reserves in such banks. Given Tether's massive capital scale and global adoption, fulfilling this requirement would be economically unfeasible without disrupting the broader crypto ecosystem.
Nonetheless, Linge believes that Tether's large market capitalization and widespread global adoption make it unlikely to face immediate financial consequences from potential withdrawal from the EU market. "Tether's operations remain largely unaffected by potential regional disruptions, and the company maintains high profit margins, on track to achieve $10 billion in annual profits by year-end."
