Circle’s USDC is the first stablecoin regulated in Europe under the MiCA law – DiarioBitcoin
By Hannah Perez
Circle claims to have become the first global stablecoin issuer to comply with MiCA, the European Union’s comprehensive cryptocurrency regulation.
***
- Circle claims to be the first permissioned stablecoin issuer in Europe under the MiCA framework
- The company behind USDC has obtained an electronic money institution license in France
- The stablecoin regulation included in MiCA came into effect yesterday, June 30, 2024
Circlethe stablecoin issuer behind USDC, claims to have become the first entity of its kind to secure a license under Europe’s new regulations.
In a statement on Monday, the company said it has secured an electronic money institution (EMI) license from the French banking regulatory authority making it an issuer of stablecoins that complies with the Cryptoasset Markets Regulation (MiCA), the strict regulatory framework for cryptocurrencies in the European Union.
Authorization was provided by the Autorité de Contrôle Prudentiel et de Résolution (ACPR) of France and means that from now on, the USDC and EURC tokens of Circleare issued in compliance with the regulatory obligations set forth in MiCA. As a result, customers in the 27-nation trading bloc can access the company’s products.
“Since our founding, Circle has sought to build a durable, compliant, and well-regulated infrastructure for stablecoins, and our accession to MiCA, which represents one of the most comprehensive cryptocurrency regulatory regimes in the world, is a major milestone.“said Jeremy Allaire, co-founder and CEO of Circle.
Circle is known for operating USDC, the second-largest stablecoin pegged to the US dollar, with a market cap of USD $32 billion. It also issues EURC, pegged to the euro.
The news comes a day after The stablecoin provision included in MiCA will come into effect yesterday.
Among the measures, limitations are imposed on the volume of transactions that can be carried out with certain stablecoinsparticularly those denominated in US dollars. The regulation also introduces reserve control, compliance and transparency requirements for issuers.
MiCA became law in 2023 after European lawmakers spent three years developing cryptocurrency-specific regulation. Taking a comprehensive approach, the framework covers cryptocurrency companies such as issuers, exchanges and wallet providers, and introduces a licensing system between all members of the bloc.
Before the rules came into effect on June 30, several cryptocurrency exchanges delisted some stablecoins, including USDT from their trading list. Tetherthe largest in the world by market capitalization.
Dante Disparte, chief strategy officer and head of global policy at Circlecalled the company’s French license a significant advance, not only for Circleif not then “the entire digital financial ecosystem in Europe and beyond.”
Article by Hannah Estefanía Pérez / DailyBitcoin
Edited image of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
