Circles USDC Becomes 1st Stablecoin to Comply with Canadian Regulations
- USDC becomes the first compliant stablecoin in Canada ensuring its availability on registered crypto platforms.
- Circle expands its global footprint including the EU and Singapore. Its now eyeing Hong Kong as a strategic growth market.
- Circles proactive approach positions it to capitalize on Hong Kongs emerging stablecoin regulatory framework.
Circle Internet Financial, a leading global financial technology firm, today announced that its regulated subsidiary has become the first stablecoin issuer to meet Canadian securities standards. This paves the way for USDC to be offered on registered crypto asset trading platforms in the Canadian market.
This is a significant milestone as USDC now became the first major dollar stablecoin that is compliant with new regulations with the Ontario Securities Commission (OSC) and Canadian Securities Administrators (CSA) Value-Referenced Crypto Asset (VRCA) requirements.
By adhering to the VRCA framework, Canadian users can access USDC on a 24/7 basis even after the CSAs December 31, 2024 deadline for delisting non-compliant stablecoins.
Circles commitment to regulatory compliance is unwavering, said Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle. By complying with the VRCA requirements, were fostering a more transparent and accountable digital financial ecosystem in Canada.
Circles proactive approach aligns with the CSAs goal of establishing a robust regulatory framework for digital assets. This development promises to streamline cross-border transactions, enhance consumer protection, and reduce settlement risks within the Canadian financial system.
Circles USDC Leads the Way in Global Regulatory Compliance
Beyond Canada, Circle continues to actively engage with global regulators to ensure compliance with evolving regulatory standards. The company has secured licenses in various jurisdictions, including the U.S. and the European Union, making USDC a widely recognized and trusted stablecoin.
It is also expanding its footprint by targeting one of Asias largest capital markets, Hong Kong, as a significant growth market. Amid the regions anticipated regulatory overhaul for stablecoins, Circle plans to establish a larger presence by expanding its local team and potentially securing a regulatory license.
As reported by TronWeekly, the Hong Kong government has been actively shaping its financial landscape to welcome stablecoin issuers via a structured sandbox program. The city-state aims to bring a legislative framework on a stablecoin by the end of the year that will see issuers meet specific guidelines, including a minimum capital requirement and full asset backing.
Considering this potential regulatory shift, Circle plans to be the first mover due to the better clarity of the regions regulatory landscape.
Read more: https://www.tronweekly.com/circle-usdc-canadian-regulations/
Text source: TronWeekly
