Circle becomes the first stablecoin issuer to receive regulatory approval under MiCA (Markets in Crypto-assets)
Circle has announced that it has obtained an e-money license from France on July 1, making it the first global stablecoin issuer to comply with the EU’s Markets in Crypto-Assets (MiCA) regulations.
This license, granted by the Autorité de Contrôle Prudentiel et de Résolution (ACPR), allows Circle to issue its stablecoins, USDC and Euro Coin (EURC), throughout the EU under the new regulatory framework, effective immediately.
Jeremy Allaire, co-founder and CEO of Circle, expressed that achieving MiCA compliance is a significant achievement for the company as they work towards establishing secure and regulated infrastructure for digital currencies. This move brings them closer to integrating digital currency into mainstream financial systems.
Stablecoins, which are cryptocurrencies tied to fiat currencies such as the US dollar, provide investors with a way to avoid the volatility often seen in other cryptocurrencies like Bitcoin. They also allow for swift transitions in and out of crypto investments without the need to rely on fiat currency in bank accounts.
The MiCA legislation represents the first comprehensive legal framework in the EU for governing crypto operations. Specific provisions are in place to safeguard investors and prevent market manipulation.
The remaining MiCA provisions relating to crypto asset service providers will be enforced by the end of December 2024, with companies required to ensure full compliance by July 2026.
Recently finalized MiCA stablecoin regulations restrict the daily transaction volume of non-euro stablecoins to a maximum of 1 million transactions or 200 million euros ($215.2 million).
With its newly acquired status as a France-registered electronic money institution, Circle is now able to offer its stablecoin services across the European Union. The “passporting” feature of MiCA allows crypto firms registered in one EU country to operate in other member states, facilitating broader market access.
Founded in 2018 and recognized for its USDC stablecoin, Circle has experienced significant growth, with USDC now ranking as the second-largest stablecoin globally.
According to CryptoSlate data, there is currently $32.4 billion worth of USDC tokens in circulation, placing it behind Tether’s USDT, which has $112.7 billion in circulation.
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