Cryptocurrency firm Circle has reached a significant milestone by securing registration as an electronic money institution (EMI) in France. This move grants Circle a crucial license to operate as a compliant company stablecoin issuer under the strict cryptographic laws of the European Union.
Circle Advance
According to a CNBC reportThe approved license positions Circle as the first global stablecoin issuer to achieve compliance with the European Union’s regulatory framework known as Markets in Crypto-Assets (MiCA).
This framework, considered a cornerstone in the EU’s approach to governing cryptocurrencies, sets out comprehensive rules and obligations for crypto companies to ensure investor protection and safeguard against market manipulation.
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Circle’s acceptance into the MiCA regulatory framework means that its USDC and Euro Coin (EURC) tokens can now be issued in the European Union while also meeting the stablecoin regulatory obligations outlined by MiCA.
Additionally, Circle is opening its Circle Mint service, allowing businesses to mint and redeem Circle stablecoins, to customers in France.
Expressing his delight at the achievement, Jeremy Allaire, co-founder and CEO of Circle, emphasized the company’s long-standing commitment to building compliance and well regulated infrastructure for stablecoins. He stated:
Our accession to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a major milestone in bringing digital currency to mainstream scale and acceptance.
European Stablecoin Adoption
The EU MiCA law, which officially came into force in May 2023, introduced the world’s first comprehensive law regulatory framework for cryptocurrency operations.
Last week, provisions specifically governing stablecoins were passed, imposing strict measures on trading volume limitations for certain stablecoins, especially those denominated in US dollars.
As a registered EMI in France, Circle can now extend its services, including minting and redeeming USDC through the Circle Mint, not only to customers in France but also to individuals and businesses across the European Union.
This is possible thanks to the “passport” concept described in MiCA, which allows crypto business offer services in one EU country and expand into other markets within the bloc.
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While Circle’s achievement is commendable, it should be noted that additional obligations under the MiCA on crypto asset service providers will become applicable by December 30, 2024. Crypto businesses will then have until July 2026 to ensure full compliance with the MiCA requirements.
Since its launch in September 2018 by Circle and cryptocurrency exchange Coinbase, USDC has gained significant traction and now ranks as the second-largest stablecoin in the world.
According to data from CoinGecko, USDC circulation reaches US$32.4 billion, behind only Tether’s USDT, which holds the title of the largest stablecoin in the world, with a circulation of US$112.7 billion.
Featured image from Shutterstock, chart from TradingView.com