Circle, the stablecoin issuer, has submitted applications to become a licensed e-money provider in France and to register as a crypto provider. If successful, the move will allow Circle to offer its products to clients in France and introduce its stablecoin, EUROC. The company is seeking a DASP registration, which requires an inspection of governance and anti-money laundering procedures. In addition, Circle plans to use France as a base for its expansion into Europe and prepare for the upcoming MiCA regulation, which mandates that issuers of any digital assets connected to fiat retain reserves.
Entering the Crypto-Friendly France
France has been attracting several crypto firms lately, including exchanges like Binance, Crypto.com, and Bitstamp. Circle CEO, Jeremy Allaire, praised the country’s “comprehensive efforts towards innovation-forward crypto regulation” and expressed excitement about the opportunity to accelerate the company’s European growth strategy with this move.
Also Read: Circle CEO: USDC Reserves at Silicon Valley Bank Safe and Available
Despite the recent failure of the U.S. banking system taking a toll on USDC, Circle has continued to make progress. The firm’s reserves backing USDC were stuck at the Silicon Valley Bank during the ordeal, but it did not stop the company from seeking opportunities in other markets. Circle’s efforts to enter France’s market come amid the EU’s Markets in Crypto-Assets (MiCA) regulation, which places trading restrictions on cryptocurrencies linked to foreign assets and requires issuers of digital assets connected to fiat to retain reserves.
In recent years, France has been working to establish itself as a leader in the regulation of cryptocurrencies and blockchain technology. In September 2020, the country adopted a new regulatory framework for digital assets and ICOs, which allows issuers to apply for approval from the French Financial Markets Authority (AMF). France’s regulatory efforts are part of a broader European trend towards regulating cryptocurrencies, with the EU seeking to create a comprehensive regulatory framework for digital assets.
