Circle has proudly declared that its stablecoins, USDC and EURC, have attained compliance with the European Union’s Markets in Crypto Assets (MiCA) regulation. This achievement now enables Circle to directly issue these stablecoins to its European clientele. Furthermore, the company holds the esteemed status of being an authorized e-money issuer in France, solidifying its position as the primary hub for its European operations.
Circle’s Stablecoins Embrace EU MiCA Regulation
In a groundbreaking move, financial technology innovator Circle unveiled on Monday that its USD-backed stablecoin USDC and the euro-supported stablecoin EURC are now operating within the regulatory framework of the European Union’s Markets in Crypto Assets (MiCA) regulation. This development signifies a momentous stride within the crypto market.
Jeremy Allaire, the CEO of Circle, took to the social media platform X to announce:
“Circle stands as the inaugural global stablecoin issuer to align with MiCA regulations. Effective July 1st, Circle is directly issuing both USDC and EURC to its European clientele.”
The Markets in Crypto Assets regulation, finalized nearly two years ago and sanctioned by the EU Parliament last year, lays out comprehensive directives for stablecoins and digital asset markets. This regulatory structure is viewed as a pivotal advancement towards integrating stablecoins into the mainstream financial ecosystem, catering to payments, finance, and commerce.
Circle elaborated:
“All USDC and EURC currently circulating in Europe adhere to MiCA regulations, with Circle maintaining 100% of EURC reserves under our regulated entity, Circle France.”
European users can seamlessly engage in trading, transactions, self-custody, and decentralized finance (defi) activities using these stablecoins without disruption, as assured by the company. Most European users interfacing with USDC or EURC through exchanges or crypto asset service providers will encounter no immediate alterations. Circle’s novel issuance and redemption protocols for USDC and EURC are managed through Circle Mint France, targeting prominent institutions in the European market, such as exchanges, market makers, brokerages, fintech entities, payment institutions, banks, and large corporations.
Moreover, the company disclosed its accreditation as an E-Money Issuer by the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the regulatory body overseeing banking and insurance in France. Circle underscored France’s pioneering stance in crypto regulation, designating the nation as its European headquarters.
What are your thoughts on Circle’s compliance with MiCA and its implications for the crypto market? Share your opinions in the comments section below.
