Circle Awarded Europes First Stablecoin License Under New MiCA Crypto Rules
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 Unions 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 Unions regulatory framework known as Markets in Crypto-Assets (MiCA).
This framework, considered a cornerstone in the EUs approach to governing cryptocurrencies, sets out comprehensive rules and obligations for crypto companies to ensure investor protection and safeguard against market manipulation.
Circles 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 companys 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 EUs MiCA law, which officially came into effect in May 2023, introduced the worlds 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.
While Circles 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 MiCAs 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, USDCs circulation amounts to $32.4 billion, trailing only Tethers USDT, which holds the title of the worlds largest stablecoin with a circulation of $112.7 billion.
Featured image from Shutterstock, chart from TradingView.com
Source: NewsBTC.com
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Text source: Crypto Breaking News
