Circle becomes first stablecoin issuer to secure license under EUs MiCA regulations
ACPR grants Circle e-money license for USDC and EURC across EU.
Circle is the first stablecoin issuer to get licensed under MiCA regulation.
MiCA aims to protect investors with stablecoin transaction limits.
Circle has become the first stablecoin issuer to secure regulatory approval under the European Unions Markets in Crypto-Assets (MiCA) regulations.
The license, issued by Frances financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), grants Circle the ability to issue its USDC and Euro Coin (EURC) stablecoins across the EU.
Circle now authorized to issue stablecoins throughout the EU
Circles e-money license from the ACPR positions it as a pioneer in complying with MiCA regulations.
Jeremy Allaire, Circles co-founder and CEO, highlighted the significance of this achievement, noting that it reflects the companys commitment to building robust and regulated infrastructure for digital currencies.
The license enables Circle to offer its stablecoin services throughout the European Union, thanks to MiCAs passporting feature, which allows crypto firms registered in one EU country to operate across all member states.
In a nutshell, stablecoins, such as USDC and EURC, are cryptocurrencies pegged to fiat currencies, offering a stable alternative to the volatility typically associated with other cryptocurrencies like Bitcoin. They facilitate quick transitions in and out of crypto investments without relying on traditional bank accounts, making them an attractive option for investors.
Impact of MiCA regulations on crypto operations in the EU
MiCA represents the EUs first comprehensive legal framework governing crypto operations, including specific provisions to protect investors and prevent market manipulation.
The initial set of MiCA regulations pertaining to stablecoins took effect immediately on June 30, while the remaining provisions for crypto asset service providers will be implemented by the end of December 2024.
Full compliance with all MiCA regulations is required by July 2026.
One notable aspect of MiCAs stablecoin rules is the limit on daily transaction volumes of non-euro stablecoins, capped at 1 million transactions or 200 million euros. This regulation aims to ensure market stability and protect the financial system from potential risks associated with high-volume transactions.
Circles USDC stablecoin second to Tethers USDT
Circle, established in 2018, has rapidly grown to become a major player in the cryptocurrency market. Its USDC stablecoin is the second-largest globally, with $32.4 billion worth of tokens in circulation, second only to Tethers USDT, which boasts $112.7 billion.
The new regulatory approval under MiCA not only strengthens Circles market position but also enhances its ability to offer secure and compliant stablecoin services across the EU.
It is important to note that while some crypto services providers like Bitstamp have dropped Tethers stablecoins in the EU, Circles regulatory approval gives the USDC an edge over the Tethers stablecoins in the EU.
The post Circle becomes first stablecoin issuer to secure license under EUs MiCA regulations first appeared on Crypto News.
Text source: Crypto News
