Regulation
Circle Becomes First Stablecoin Issuer to Obtain Regulatory Approval Under MiCA
Circle announced on July 1 that it has received an e-money license from France, positioning itself as the first global stablecoin issuer to comply with EU directives Cryptocurrency Markets (MiCA) regulations.
The license, issued by the French financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), allows Circle to issue its own stablecoins. USDC and the single currency euro (EURC) across the EU under the new regulatory framework, with immediate effect.
Co-founder and CEO of Circle Jeremy Allaire She said:
“Achieving MiCA compliance is a monumental step for Circle as we continue to build a robust, regulated digital currency infrastructure. This milestone brings us closer to integrating digital currency into traditional financial systems.”
Stablecoins, which are cryptocurrencies pegged to fiat currencies like the U.S. dollar, allow investors to avoid the volatility typical of other cryptocurrencies like Bitcoin. They also allow for quick transitions in and out of cryptocurrency investments without relying on fiat currency in bank accounts.
The MiCA legislation is the first comprehensive legal framework in the EU that regulates crypto transactions. It includes specific provisions to protect investors and prevent market manipulation.
The rest MiCA Provisionswhich affect cryptocurrency service providers, will come into force by the end of December 2024. Companies will have until July 2026 to ensure full compliance with these regulations.
Specifically, MiCA’s stablecoin rules, finalized last week, limit the daily transaction volume of non-euro stablecoins to a maximum of 1 million transactions or €200 million ($215.2 million).
With its new status as an electronic money institution registered in France, Circle can now offer its stablecoin services across the European Union. MiCA’s “passporting” feature allows cryptocurrency companies registered in one EU country to operate in other member states, facilitating broader market access.
Circle, founded in 2018 and known for its stablecoin USDC, has grown significantly, with USDC becoming the second largest stablecoin in the world.
According to CryptoSlate data, there are currently $32.4 billion worth of USDC tokens in circulation, making it second only to Tether’s USDT, which has $112.7 billion in circulation.