Circle balances compliance in Canada with operational efficiency through staff layoffs
Circle has become the first stablecoin issuer to meet Canadas new listing requirements for its USD Coin (USDC), marking a significant milestone amid ongoing reports of layoffs within the company.
In a Dec. 4 post on X, Circle CEO Jeremy Allaire announced that USDC is the first of the top dollar-backed stablecoins to comply with Canadas updated regulations for digital assets.
The rules, set by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA), cover Value-Referenced Crypto Assets (VRCA).
The compliance means USDC will remain available on registered crypto exchanges and trading platforms in Canada. These platforms must meet the new VRCA standards by Dec. 31, and non-compliant stablecoins will be delisted.
Several notable crypto firms, including Gemini, Binance, and Paxos, have exited the Canadian market in the past year, citing regulatory challenges. These departures followed the Canadian governments introduction of stricter rules for the crypto industry.
However, Circles Head of Global Policy, Dante Disparte, highlighted that USDCs continued presence in Canada demonstrates the companys commitment to global regulatory standards.
He emphasized that Canadas forward-thinking approach to regulation enhances the integrity of digital asset markets while supporting USDCs use within the countrys growing ecosystem.
Workforce reduction
At the same time, Circles regulatory success coincides with reports of a 6% workforce reduction within the company, Bloomberg reported.
A Circle spokesperson reportedly clarified that the layoffs were part of routine operational reviews to optimize investments and manage expenses. The spokesperson added that the firm continues to invest in critical teams and infrastructure while slightly scaling back on certain roles in other areas.
Meanwhile, the company remains focused on expanding its geographic footprint, particularly in areas like Artificial Intelligence.
These moves coincide with USDCs continued dominance as the second-largest stablecoin in the crypto market. According to CryptoSlates data, the digital asset controls 20% of the market with its $40 billion supply.
The post Circle balances compliance in Canada with operational efficiency through staff layoffs appeared first on CryptoSlate.
Text source: CryptoSlate
