Circle Awarded Europe’s First Stablecoin License Under New MiCA Crypto Rules
July 01 2024 - 10:30PM
NEWSBTC
Cryptocurrency firm Circle has achieved a significant milestone by
securing registration as an electronic money institution (EMI) in
France. This move grants Circle a crucial license to operate as a
compliant stablecoin issuer under the European Union’s rigorous
crypto laws. Circle Breakthrough According to a CNBC report,
the approved license positions Circle as the first global
stablecoin issuer to achieve compliance with the European Union’s
regulatory framework known as Markets in Crypto-Assets
(MiCA). This framework, considered a cornerstone in the EU’s
approach to governing cryptocurrencies, sets out comprehensive
rules and obligations for crypto companies to ensure investor
protection and safeguard against market manipulation. Related
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Record Lows Circle’s acceptance into the MiCA regulatory framework
means that both its USDC and Euro Coin (EURC) tokens can now be
issued within the European Union while meeting the stablecoin
regulatory obligations outlined by MiCA. Additionally, Circle
is opening up its Circle Mint service, enabling businesses to mint
and redeem Circle stablecoins, to customers in France. Expressing
his satisfaction with the achievement, Jeremy Allaire, co-founder
and CEO of Circle, emphasized the company’s longstanding commitment
to building compliant and well-regulated infrastructure for
stablecoins. He stated: 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. European Stablecoin Adoption The EU’s MiCA
law, which officially came into effect in May 2023, introduced the
world’s first comprehensive regulatory framework for cryptocurrency
operations. Last week, provisions specifically governing
stablecoins were approved, imposing stringent measures on trading
volume limitations for certain stablecoins, particularly those
denominated in US dollars. As a registered EMI in France, Circle
can now extend its services, including the minting and redemption
of USDC through Circle Mint, not only to customers in France but
also to individuals and businesses across the European Union.
This is made possible by the concept of “passporting” outlined in
MiCA, which allows crypto businesses to offer services in one EU
country and expand into other markets within the bloc. Related
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Analyst While Circle’s achievement is commendable, it should be
noted that additional obligations under MiCA about crypto asset
service providers will become applicable by December 30, 2024.
Crypto companies will then have until July 2026 to ensure full
compliance with MiCA’s requirements. Since its launch in September
2018 by Circle and crypto exchange Coinbase, USDC has gained
significant traction and now holds the position of the
second-largest stablecoin globally. According to CoinGecko
data, USDC’s circulation amounts to $32.4 billion, trailing only
Tether’s USDT, which holds the title of the world’s largest
stablecoin with a circulation of $112.7 billion. Featured image
from Shutterstock, chart from TradingView.com
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