Cryptocurrency firm Circle announced today (Monday) that it is now registered as an electronic money institution (EMI) in France. This registration grants Circle the license to become a compliant stablecoin issuer under the European Union's cryptocurrency regulations.
Circle, known primarily for its USD Coin (USDC) stablecoin, received the e-money license from France’s banking industry regulator, the Autorité de Contrôle Prudentiel et de Résolution. This makes Circle the first global stablecoin issuer to comply with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework.
Circle Expands EU Stablecoins
With this approval, Circle will issue its USDC and Euro Coin (EURC) tokens in the EU, adhering to MiCA's stablecoin regulatory requirements. The company also announced the opening of Circle Mint in France, allowing businesses to mint and redeem Circle stablecoins.
Stablecoins are a type of cryptocurrency pegged to traditional assets, like government-issued currencies such as the U.S. dollar. Investors use them to avoid the volatility seen in other cryptocurrencies like bitcoin. They are also a key tool for trading in and out of cryptocurrencies quickly, without relying on fiat currencies stored in bank accounts.
Circle earns license to issue USDC and EURC under Europe's MiCA regulatory framework https://t.co/yx6KEu9epA
— The Block (@TheBlock__) July 1, 2024
Gaining MiCA Compliance
The EU passed a comprehensive law last year governing cryptocurrency companies' operations. This law, known as MiCA, outlines rules for investor protections and platform security. MiCA officially took effect in May 2023, but stablecoin provisions were only approved last week. These provisions impose trading limitations on certain stablecoins, particularly US-denominated ones.
According to MiCA, companies must stop issuing non-euro denominated stablecoins used as a “means of exchange” if they exceed 1 million transactions or 200 million euros per day.
As a France-registered EMI, Circle can now offer its services, including minting and redeeming USDC via Circle Mint, to customers throughout the European Union. MiCA allows crypto businesses to offer services in one EU country and extend them to other markets within the bloc.
“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,” Jeremy Allaire, Co-Founder and CEO of Circle, said in a statement.
The remaining MiCA obligations for crypto asset service providers will become applicable by December 30, 2024. After this date, crypto companies will have until July 2026 to achieve full compliance with MiCA.
This article was written by Tareq Sikder at www.financemagnates.com.
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