Circle has set a precedent by becoming the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. Circle’s French entity will now issue both USDC and EURC stablecoins within the EU, adhering to these landmark crypto laws.
Circle’s Regulatory Compliance and Market Expansion
With its Electronic Money Institution (EMI) license, Circle can issue USDC and EURC in the EU, meeting MiCA’s regulatory requirements for stablecoins or e-money tokens. This compliance positions Circle to capture significant market share within the 27-nation trading bloc, home to 450 million people. This strategic move also enhances the competitive edge of USDC against its main rival, Tether’s USDT.
Circle Representatives on MiCA Compliance
Jeremy Allaire, Co-Founder and CEO of Circle, expressed the company’s dedication to regulatory adherence. “Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins, and 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 stated. He emphasized the importance of working closely with French and EU regulators to offer fully-compliant dollar and euro stablecoins to the European market, unlocking the potential of digital assets to transform finance and commerce.
Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, highlighted the broader impact of this achievement. “Achieving MiCA compliance through our French EMI license is a significant step forward, not just for Circle, but for the entire digital financial ecosystem in Europe and beyond.” Disparte announced that Circle will begin issuing USDC and EURC to European customers immediately.
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Strategic Choice of France as European Headquarters
Allaire elaborated on the decision to choose France as Circle’s new European headquarters. “Circle determined quickly that we should choose France as our new European headquarters for launching our regulated stablecoin and digital asset businesses. That choice has proven wise – we have been able to work extremely hard over the past two years with the ACPR to bring Circle’s business into the EU and under the new comprehensive regulatory regime of MiCA.”
Impact on the Digital Market Industry
USDC is now the only one of the top 10 stablecoins by market capitalization to be MiCA compliant. Stablecoins play a critical role in the digital market industry by facilitating trading on exchanges and increasingly being used for transactions and remittances. Circle’s compliance with MiCA is expected to set a standard for other stablecoin issuers and contribute significantly to the growth and stability of the digital financial ecosystem in Europe.
