Tether Skips MiCA Registration as 53 Institutions Obtains EU MiCA License

The European Union’s Markets in Crypto-Assets (MiCA) framework is growing a wide range of regulation, with newly released data providing insights into licensed crypto-asset service providers (CASPs) and stablecoin issuers (formally classified as e-money token issuers or EMT issuers).

According to Patrick Hansen, Circle’s EU Policy Head, 39 CASPs and 14 stablecoin issuers have successfully navigated the regulatory landscape and secured MiCA licenses.

However, while the issuance of 53 licenses signals progress, the absence of key players like Tether and Binance raises pertinent questions about the future of crypto operations within the bloc.

Tether Opts Against MiCA Licence

Tether, the issuer of the world’s largest stablecoin, USDT, has opted not to register under the MiCA framework. This decision effectively prohibits Tether from operating within the EU under the new regulatory regime, prompting several major exchanges to delist USDT trading pairs for European users.

However, among the licensed stablecoin issuers, France, Germany, and the Netherlands emerge as the dominant forces, collectively accounting for 9 of the 14 authorized entities.

Notably, twenty fiat-backed stablecoins, primarily denominated in euros and dollars, have achieved MiCA compliance, spanning seven EU member states. This concentration suggests a proactive approach from these nations in fostering a regulated stablecoin market.

On the CASP front, Germany and the Netherlands continue to lead the regulatory charge, hosting 23 of the 39 authorized providers. Furthermore, a mix of crypto-native firms and traditional finance players are securing licenses, including prominent names like Coinbase, Bitstamp, Kraken, OKX, Robinhood, Trade Republic, and BBVA. 

Interestingly, Tether is not the only giant holding back; the crypto exchange Binance is also omitted from the CASP list, which is likely related to the exchange’s ongoing regulatory challenges within the EU.

Audit Uncertainty Leaves Transparency Issue

Another primary concern is the absence of Tether from the list of authorized EMT issuers, which is particularly noteworthy, given the company’s ongoing audit controversy and regulatory standing. Consumers Research has chided Tether for its reliance on attestations rather than independent audits to validate its reserves.

While CEO Paolo Ardoino has acknowledged the company’s pursuit of a top-tier audit partner, the lack of audit clarity remains a potential impediment to full MiCA compliance. 

“So, you are a Big Four auditing firm, and you have the entire banking industry that is your customer. Why would you risk 100,000 customers for a couple of stablecoins? Between the FTX disaster and the hacks, heists, and regulatory crackdowns in crypto, it hasn’t been easy to sign on as a client for one of those top accounting outfits,” Ardoino stated.