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EU MiCA Rules Will Turn Your Life Savings Into a High-Risk Euro Loan to a Bank You’ve Never Heard Of

An illustration depicting a person trapped in a bank vault with chains locked to them while money flows freely outside the vault.

The EU’s new MiCA framework is like a bad boyfriend – it promises to regulate everything but ultimately just brings more drama and risk for the entire crypto space. The impending regulations will force stablecoin issuers, including Tether CEO Paulo Ardoino’s baby USDt (USDT), into holding 60% of their reserves in European banks. That’s right folks, you’re basically putting your money on a loan from some sketchy bank that might just bail out at any moment.

Source: cointelegraph

Europe’s forthcoming regulatory framework will introduce banking concerns for stablecoin issuers that could threaten the stability of the broader crypto space, according to Paulo Ardoino. The Markets in Crypto-Assets Regulation (MiCA) is the first comprehensive regulatory framework for the crypto industry and is set to go into full effect on Dec. 30. Under MiCA, stablecoin issuers will be required to hold at least 60% of reserve assets in European banks. […]

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