Regulatory compliance and financial stability are essential when choosing which cryptocurrencies to accept. Not all stablecoins meet the necessary standards, and I only support those that align with legal frameworks and transparency requirements.
This is why I accept USD Coin (USDC) but not Tether (USDT).
As a Swedish citizen and business owner, I prioritize regulatory compliance, transparency, and financial stability when choosing which cryptocurrencies to accept as payment. That’s why I accept USD Coin (USDC) but not Tether (USDT).
USDC, issued by Circle, is fully compliant with the Markets in Crypto-Assets (MiCA) regulation—Europe’s comprehensive framework governing crypto-assets. In July 2024, Circle obtained an Electronic Money Institution (EMI) license from the French banking regulator (ACPR), making it the first stablecoin issuer to comply with MiCA. This ensures USDC operates within the legal framework of the EU, providing trust and security to businesses and consumers.
Circle maintains full transparency with regular, independently verified attestations of USDC’s reserves. Every USDC token is fully backed by U.S. dollars and U.S. Treasury securities. This transparency guarantees that USDC maintains its 1:1 peg with the U.S. dollar, ensuring stability and reliability in transactions.
MiCA’s strict regulatory requirements focus on market stability and investor protection. Because USDC is MiCA-compliant, it adheres to strict reserve management and governance standards. This makes it a safe and legally recognized stablecoin for transactions across Europe.
USDT, issued by Tether, has not met MiCA’s regulatory requirements. As a result, major exchanges like Crypto.com have started delisting USDT for European customers to comply with MiCA. This lack of compliance introduces legal uncertainties and potential operational risks for businesses operating within the EU.
Unlike USDC, Tether has been repeatedly criticized for opaque reserve disclosures and inconsistent audits. While USDT claims to be fully backed, there have been ongoing concerns about the quality and liquidity of its reserves. Without full transparency, it’s impossible to verify whether USDT maintains a true 1:1 peg with the U.S. dollar.
The European Securities and Markets Authority (ESMA) has advised against using non-compliant stablecoins like USDT. This scrutiny signals potential restrictions, legal challenges, or market instability for USDT within the European financial ecosystem. Businesses accepting USDT may face regulatory hurdles in the near future.
By accepting USDC, I ensure that all crypto payments align with EU laws, financial stability, and transparency standards. MiCA compliance guarantees that USDC is secure, legally recognized, and backed by reliable reserves. In contrast, USDT’s lack of compliance, transparency concerns, and regulatory risks make it an unsuitable option.
For those looking for a stable, compliant, and transparent cryptocurrency for transactions, USDC is the clear choice.
