Circle Secures First MiCA-Compliant Stablecoin License in Europe, Sets Precedent

The issuer of the USDC and EURC stablecoins, Circle, has officially become the first global stablecoin issuer to secure an Electronic Money Institution (EMI) license under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.

With this, Circle has set a precedent for other stablecoin issuers aiming to operate within the EU.

“Of the top 10 stablecoins by market capitalization, only USDC is currently MiCA-compliant,” Circle said on 1 July 2024. “This milestone underscores Circle’s commitment to regulatory compliance for dollar and euro stablecoins.”

BREAKING NEWS: @Circle announces that USDC and EURC are now available under new EU stablecoin laws; Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1st.

Details… pic.twitter.com/isNBumoi3e

— Jeremy Allaire – jda.eth (@jerallaire) July 1, 2024

Circle Positioned To Facilitate Increased Stablecoin Adoption In European Market

Commenting on Circle’s win, Jeremy Allaire, co-founder and CEO of Circle said, “Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins.”

“Our adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance,” Allaire added. 

Circle secured the EMI license from thee French banking regulatory authority, the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

The company also launched Circle Mint to enable business customers in Europe to mint and redeem USDC and EURC tokens.

According to the company, “Circle Mint provides near-instant and cost-effective access to stablecoin transactions, enhancing operational efficiency for corporate clients.”

Going ahead, this service is expected to play a crucial role in facilitating the adoption of stablecoins in the European market. 

MiCA Comes Into Effect To Protect European Financial System

MiCA represents the EU’s comprehensive approach to regulating the crypto market. 

With an aim to provide a unified legal framework across the EU, MiCA kicked in this month. The regulation covers various aspects of the crypto industry, including the issuance of stablecoins, consumer protection, and measures to prevent market abuse and insider trading.

Circle’s successful compliance with MiCA has significant implications for the stablecoin market. 

By securing the first MiCA-compliant license, Circle has set a benchmark for other stablecoin issuers. This move is likely to encourage more issuers to seek regulatory approval, thereby increasing the overall transparency and stability of the market.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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